The crypto industry is on a spending spree as multiple political action committees (PACs) are getting ready to disburse over $160 million to support crypto-friendly candidates in the next US Congress election in a move that political observes have deemed as the dawn of the “Crypto Congress.”

Nearly half of all corporate donations during this election cycle have reportedly come from the blockchain industry, surpassing by far the contributions of other powerful sectors like oil and gas and banking.

 

The head of communications for Citizens for Responsibility and Ethics in Washington emphasized the unprecedented nature of these contributions and noted that the industry has shifted its stance “from spending very little to being arguably the biggest spender of the election cycle.”

The industry’s interest in supporting its political ambitions comes at a point when digital assets are still embraced by only a fraction of the American public. However, a more favorable regulatory environment is considered crucial to foster higher levels of embracement and adoption.

Both Parties Receive Similar Share of Crypto Donations

The industry’s political investment strategy covers both major parties and both chambers of Congress. Among House Democrats, crypto super PACs have invested $31.5 million, with significant contributions going to candidates like Shomari Figures from Alabama ($2.6 million) and Rep. Don Davis of North Carolina ($2.2 million).

Senate Democrats have received a similar $30.1 million, with Rep. Ruben Gallego of Arizona and Rep. Elissa Slotkin of Michigan each receiving $10 million. Both candidates are up in the polls at the time of writing.

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On the Republican side, House candidates have received $16.7 million, with Rep. Michelle Steel of California leading the pack in terms of donations received with $2.7 million. The Senate Republican allocation stands at $49.6 million, with Bernie Moreno of Ohio receiving the largest single investment of $40.1 million in his campaign against Senate Banking Chair Sherrod Brown.

 

This battle in Ohio represents the industry’s biggest gamble as it could be decisive in gaining control of the Senate and for the future of crypto regulation. In Utah, Republican John Curtis has emerged as another industry favorite, receiving more than $1.9 million from the Defend American Jobs PAC in his bid for Mitt Romney’s Senate seat.

People Who Invest in Digital Assets Are Inclined to Support Pro-Crypto Candidates

According to Andreessen Horowitz’s State of Crypto report, over 40 million Americans currently hold cryptocurrency. The majority of these individuals are young and have diverse views when it comes to politics.

Perhaps more significantly, 51% of these holders indicate that they would support crypto-friendly candidates. The industry’s political investment strategy has proven remarkably effective with 36 out of 42 primary candidates supported by crypto-backed super PACs winning their respective races.

The geographic distribution of these investments covers multiple battleground states, with substantial allocations in Arizona ($3.6 million), New York ($5.4 million), Virginia ($4.8 million), and California ($5.7 million).

This widespread support has helped create a broad coalition of pro-crypto politicians who understand the technology and its potential impact on the American economy.

Chair of Key Committee Vows to Discuss Key FIT21 Provisions Before the Year Ends

Race aside, the first comprehensive regulatory framework for the crypto sector could be passed before the year ends. Key pieces of the Financial Innovation and Technology for the 21st Century Act (FIT21) are being discussed at the moment to create a legal framework that can be used to regulate stablecoins and other digital assets.

Rep. French Hill (R-AK), Vice Chairman of the House Financial Services Committee, expressed optimism about the passing of this bill along with the National Defense Authorization Act. Their plan would be to use the latter to introduce and mandate a discussion of specific provisions of the FIT21 bill to expedite their approval.

“Know that we in the House are looking for opportunities to take action there,” Hill said. He added: “And if we’re not successful, then it will be a top priority going into the 119th Congress: privacy, stablecoins, and the FIT21 regulatory framework.”

Meanwhile, the House’s Majority Whip, Rep. Tom Emmer, stated: “When we talk about digital assets, when we talk about crypto, that is not about Republicans and Democrats. That’s about Americans, that’s about decentralization of a system that has been, literally, consolidated at the top.”

Crypto Industry’s Political Investments Could Set Precedent for Other Sectors

A crypto-friendly Congress could reshape the regulatory environment for digital assets in the United States. Rep. Mike Flood predicts significant progress on this front and suggests that crypto skeptics will face a more educated and supportive congressional panel.

“What I know about the folks who will be coming to Congress is you’re going to have a lot more forward-looking people who understand that digital innovation is really important for our economy,” commented Rep. Wiley Nickel, a pro-crypto Democrat from North Carolina

The industry’s success in building political influence could serve as a blueprint for other emerging technologies seeking to navigate Washington’s complex landscape when it comes to gaining the support of lawmakers.

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With both major presidential candidates expressing support for the industry and a growing bipartisan coalition in Congress, the stage appears to be set for significant regulatory developments.

The industry’s ability to transform itself from a relatively minor player to a major political force demonstrates how targeted political investments can yield positive results and shape federal regulations that suit the interests of not just one sector but also consumers who enjoy and profit from investing in these assets and technologies.