According to CNN, the cryptocurrency industry spent up to $131 million through super PACs (political action committees) to support congressional candidates friendly to the sector in the recent US election. At the same time, many billionaires in the industry also poured millions of dollars into the election campaign of Mr. Donald Trump - who promised many policies beneficial to the cryptocurrency market.
Now, the crypto billionaires are determined to change how Washington regulates the industry. Their main goal is to ensure that Trump chooses a more crypto-friendly SEC chairman than Gary Gensler, who has angered industry CEOs with his tough stance under the Biden administration.
Additionally, political action groups are also lobbying Congress to pass the necessary legal framework to bring cryptocurrencies into the mainstream US financial system.
"Dream" scenario
In this election, the "Stand with Crypto" monitoring group recorded 274 pro-crypto candidates elected to the Myc lower house and 20 elected to the senate.
Industry super PACs have invested heavily in both Republicans and Democrats, including two senators, Elissa Slotkin (Michigan) and Ruben Gallego (Arizona).
The results mark a remarkable recovery just two years after the cryptocurrency industry was rocked by the sudden collapse of cryptocurrency exchange FTX, after which lawmakers quickly distanced themselves from a donation from FTX founder Sam Bankman-Fried, who is currently serving a 25-year prison sentence for defrauding customers and investors.
According to data from CoinMarketCap, Bitcoin's price increased sharply after the US election day, officially reaching a new record of over $93,000 on November 13, before adjusting to the current area above $91,000.
How Washington regulates will have a major impact on the booming cryptocurrency industry, with 52 million Americans now owning digital assets.
“Cryptocurrency is a political force,” Kristin Smith, CEO of the 98-member Blockchain Association, told CNN. “The election has created the most pro-crypto Congress in history, and the most pro-crypto administration in history.”
The CEO said the crypto industry is working with Trump’s transition team through multiple channels to ensure voices are heard on personnel and policy priorities.
Additionally, the Blockchain Association also proposed the creation of a “White House envoy” to coordinate cryptocurrency policy across government agencies.
Notably, Donald Trump, who called Bitcoin a “fraud” in 2021, has now changed his mind. Not only has he joined the NFT sale, he has also promised to turn the US into the “global cryptocurrency capital”.
The US President also pledged to create a national cryptocurrency reserve fund and fire SEC Chairman Gensler as soon as he takes office.
The Trump family, especially his youngest son Barron, is said to have played a key role in this change. Trump and his sons have even launched their own cryptocurrency company, World Liberty Financial.
In addition, billionaire Elon Musk, a close ally of Trump, has also joined the cryptocurrency campaign. The Tesla CEO has spent nearly $119 million to support Trump's campaign and has been appointed to a new agency called the Department of Government Efficiency (DOGE), a reference to the Dogecoin cryptocurrency that Musk has promoted.
Cryptocurrency billionaires are ready to "burn money"
Super PACs supporting Mr. Trump’s campaign have also drawn contributions from industry heavyweights. Prominent venture capitalists Marc Andreessen and Ben Horowitz, whose firm invests in cryptocurrency startups, each gave $2.5 million to the Right for America super PAC.
In a recent podcast, Andreessen called the US election results “a release from the yoke” and joined Horowitz in criticizing the Biden administration for regulations that stifle innovation.
In fact, much of the activity in this year’s congressional elections has come from three crypto-industry-funded super PACs: Fairshake, Defend American Jobs, and Protect Progress. These groups have run a series of ads in support of their favored candidates, though most of the ads have focused on issues like the candidates’ personal histories rather than on cryptocurrency.
The industry's political influence was evident when it spent about $10 million against Democratic congresswoman Katie Porter — a close ally of Senator Elizabeth Warren, who is known for her criticism of cryptocurrencies.
In Ohio, the crypto super PAC spent $40 million backing Republican Bernie Moreno, helping him defeat Democratic Sen. Sherrod Brown, who supports tighter regulation of the cryptocurrency industry.
The US House of Representatives also passed a bipartisan bill that would transfer primary oversight of the cryptocurrency industry from the SEC to the Commodity Futures Trading Commission (CFTC). While the bill has yet to pass the Senate, the industry sees it as a step forward in reshaping regulation.
Mixed reactions
Cryptocurrency entrepreneurs and billionaires insist they are not trying to avoid regulation, but rather want more transparency to support the growth of the market. “To build, you need to know the rules that govern what you’re building,” said Colin McLaren, director of client relations at the Cedar Innovation Foundation.
However, consumer groups warn that the industry proposals could weaken consumer protection regulations.
“The recent election showed that the cryptocurrency industry is willing to burn money to sway politicians who support products that are unsafe and have no economic value,” said Robert Weissman, co-chair of Public Citizen.
Organizations like Fairshake and affiliated super PACs have raised $78 million for the 2026 midterms, including $30 million unspent from this year's campaign and financial commitments from Andreessen Horowitz and Coinbase.
“We need to invest consistently year after year and make sure Congress understands the importance of this industry,” said Kara Calvert, head of US policy at Coinbase.
Bills that would shift some oversight of the cryptocurrency market from the SEC to the CFTC are expected to be considered in the upcoming Congress, despite concerns from critics that the move could weaken oversight.
