Members of US Congress backed by cryptocurrency Political Action Committees (PACs) will take office on January 3.

The 119th session of Congress is about to convene, with United States lawmakers who benefited from support from the cryptocurrency industry in their respective 2024 primaries or elections soon to be sworn into office. The crypto industry’s influence on the election cycle has been significant, with millions of dollars poured into media buys to support "pro-crypto" candidates.

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High-Profile Elections

One of the most high-profile elections saw Republican Bernie Morenoda defeat incumbent Ohio Senator Sherrod Brown by roughly 200,000 votes. The Defend American Jobs PAC spent more than $40 million in this election, highlighting the significant financial influence of the crypto industry on electoral outcomes.

Crypto Industry’s Influence on Senate Composition

According to data from the election influence tracking website Follow The Crypto, 10 new members of the US Senate expected to be sworn in benefited in some way from funding from the cryptocurrency industry. This includes a $6,600 individual contribution from Ripple co-founder Chris Larsen to Maryland Senator Angela Alsobrooks and more than $10 million from the Protect Progress PAC — also a Fairshake affiliate — to support Michigan Senator Elissa Slotkin.

The crypto money arguably influenced the composition of the next US Senate just as much if not more than other special interest groups. The makeup of the US House of Representatives is a similar story, with 63 new members taking office in January. Fairshake and its affiliates poured millions of dollars into primary races in 2024 to support both Democratic and Republican candidates who had expressed views favoring the crypto industry.

Crypto Industry’s Influence on House Composition

The related article "What role did crypto voters play in the 2024 US election?" highlights the significance of crypto voters in shaping electoral outcomes. In one of its biggest expenditures resulting in a win for the candidate, Protect Progress spent roughly $1.7 million in media buys to back Alabama Representative Shomari Figures over Anthony Daniels in the primary for the state’s 2nd Congressional District.

Some House candidates, including Texas Representative Sylvester Turner, appeared to have not received any support from crypto executives or PACs. The lack of support may be due to the candidate’s views being unfavorable to the crypto industry or a deliberate choice by the industry to focus on other candidates.

No Signs of Crypto Money Stopping in the Next Election Cycle

According to the advocacy group Stand With Crypto — which also attempted to influence US voters to choose candidates it considered favorable to the industry — roughly 270 lawmakers in the next session of Congress will be "pro-crypto." This suggests a clear majority in the House, and the composition of both chambers could affect legislation on how to regulate crypto in the US through proposed bills like the Financial Innovation and Technology for the 21st Century Act (FIT21).

After their 2024 election wins, some in the industry have suggested that they will continue their approach to supporting candidates in the 2026 midterms and beyond. As of November, Fairshake reported having roughly $103 million to be used for the 2026 election cycle, primarily funded by Coinbase and Ripple.

All 435 House Members Will Be Up for Election Again in 2026

The significance of this development cannot be overstated, as all 435 House members serve two-year terms. This means that the entire House will be up for election again at the same time, potentially creating a wave of pro-crypto candidates being elected into office.

Continued Support from Crypto Industry in Future Elections

The industry’s continued support for pro-crypto candidates may lead to significant changes in legislation related to crypto regulation. As the industry continues to grow and mature, it is likely that lawmakers will be influenced by the crypto industry’s financial might.

However, some argue that this influence could also lead to a lack of diversity in legislative views on crypto regulation. Without a diverse range of opinions, the potential for effective regulation may be compromised.

Conclusion

The election cycle has shown the significant impact of the crypto industry on electoral outcomes. As the 119th session of Congress convenes, it remains to be seen how this influence will shape legislation related to crypto regulation.

However, one thing is clear: the crypto industry’s financial might will continue to play a significant role in shaping the composition of both chambers and influencing legislative views on crypto regulation.