CNN
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The crypto industry’s leading super PAC has poured $131 million into Congressional races this election cycle to help elect dozens of pro-crypto members of Congress, while others with an interest in crypto Private billionaires spent millions of dollars to support Donald Trump’s return to the White House.
They are now determined to change the way the Washington government handles their business.
The goal is to ensure that Trump chooses a crypto-friendly Securities and Exchange Commission chairman to replace Gary Gensler, whose heavy-handed enforcement under the Biden administration has infuriated crypto CEOs. This includes making Industry groups are also lobbying Congress to pass the regulatory framework they say is needed to bring cryptocurrencies into the mainstream of the U.S. financial system.
The industry could be in a good position heading into the new Congress. A tracker run by a group called Stand with Crypto said 274 pro-crypto candidates were elected to the House of Representatives and 20 to the Senate this cycle. Cryptocurrency super PACs have spent large amounts of money on key Democratic politicians as well as Republicans. That includes two candidates for open seats in the U.S. Senate, Elissa Slotkin of Michigan and Ruben Gallego of Arizona.
Cryptocurrency’s bipartisan political influence signals a remarkable recovery from just two years ago, when the industry was reeling from the sudden collapse of the troubled FTX cryptocurrency exchange. In the aftermath, lawmakers scrambled to recover campaign funds from the company’s leader, Sam Bankman Freed, who is currently serving a 25-year prison sentence for defrauding customers and investors.
Bitcoin, the world’s largest virtual currency, rose to an all-time high after President Trump’s victory in anticipation of further crypto-promoting policies from the administration.
How Washington regulates the industry will have huge implications for this fast-growing sector, along with the 52 million Americans who currently hold digital assets.
“Cryptocurrency is a political force,” Kristin Smith, chief executive of the 98-member Blockchain Association, told CNN. “As a result of this past election, we not only have the most pro-crypto Congress ever elected, we also have the most pro-crypto government ever held in office. It will be.”
Smith said the industry has been in touch with the Trump transition team “through a variety of channels” to make its views known about selections and other policy preferences.
“The strategy is to have as many conversations as possible with as many people in Trump’s orbit as possible so that everyone understands what the cryptocurrency industry is most interested in,” she said. Ta.
Smith said current industry candidates for SEC chairman include Dan Gallagher, a former SEC commissioner and current chief legal officer of Robinhood, which allows the buying and selling of cryptocurrencies on its platform. .
Paul Atkins, a former SEC commissioner who now runs a financial services consulting firm, is also seen as a top candidate. Atkins serves on the advisory board of the Token Alliance, which promotes the use of digital assets. Neither Gallagher nor Atkins responded to CNN’s inquiries.
Smith said the blockchain group also wants to push for other changes, such as the creation of a White House czar who could help coordinate crypto policy across government agencies.
President Trump and several key allies working on the transition are clearly pro-cryptocurrency allies. The former president, who in 2021 appeared to dismiss Bitcoin as “a scam,” has become a convert. Since then, he has a licensing agreement to sell NFTs, or non-fungible tokens.
Trump made big promises when he attended a Bitcoin conference in the summer. He promised to oust SEC Chairman Gensler and make the United States the “cryptocurrency capital of the world.” (Mr. Gensler’s term ends in 2026, but it is customary for SEC commissioners to resign when a new administration takes office.)
President Trump also promised to create a national cryptocurrency reserve.
Trump and his sons have also launched their own cryptocurrency business, World Liberty Financial. Given his role in selecting federal officials who police the industry, it’s unclear how the president-elect intends to avoid potential conflicts of interest with this sector and other parts of his business empire.
His conversion appears to have been prompted in part by the interest of his sons. During a livestream promoting World Liberty Financial, President Trump described his 18-year-old son Barron as a cryptocurrency fan.
Steve Witkoff, a real estate developer and close friend of Trump, also said he was involved in the venture.
President Trump’s transition officials did not respond to CNN’s request for an interview.
Other Trump supporters are also bullish on digital assets, including billionaire Elon Musk. He spent about $119 million helping Trump get elected and was tapped to lead the new Department of Government Efficiency, whose abbreviation “DOGE” is a play on the popular cryptocurrency Dogecoin. By a mogul.
Howard Lutnick, co-chair of the presidential transition, oversees Cantor Fitzgerald, an investment bank whose client list includes digital currency firm Tether.
A super PAC supporting Trump’s candidacy also attracted donations from industry heavyweights. Venture capital executives Marc Andreessen and Ben Horowitz, whose firm invests in cryptocurrency startups, are Trump allies who each promoted his candidacy in battleground states this summer. He donated $2.5 million to Right for America, a super PAC led by Sergio Go.
In a recent podcast, Mr. Andreessen praised the election results, saying, “It felt like a sore throat.”
Both investors have criticized the Biden administration’s regulatory stance for stifling American innovation. They also helped fund FairShake, a crypto industry super PAC that launched last year and has been active in Congressional contests.
Other industry donors supporting Mr. Trump include twin brother crypto tycoons Tyler Winklevoss and Cameron Winklevoss, who each gave $250,000 to a pro-Trump super PAC overseen by Mr. Musk. and donated about $1 million each in Bitcoin to the Trump Community Chest of America.
Much of the activity influencing Congressional elections this cycle has come from three crypto industry-funded PACs: FairShake and its two affiliated super PACs, Defend American Jobs and Protect Progress. These were running advertisements to support the candidates they supported.
Their money made a difference, but it’s not clear whether the pro-crypto agenda persuaded voters. Most of their ads didn’t even mention cryptocurrencies, instead promoting other issues such as the candidates’ personal histories.
The industry’s political influence was exposed earlier this year in the wake of a nearly $10 million spending spree against Democratic Congresswoman Katie Porter, a close ally of Massachusetts Sen. Elizabeth Warren, a prominent critic of the industry. It became. Porter lost the California Senate primary to fellow Democrat Adam Schiff.
An industry super PAC spent $40 million to support Bernie Moreno, the Republican Senate candidate in Ohio who ousted three-term Democratic Sen. Sherrod Brown.
Brown, who chairs the powerful Senate Banking Committee, had called for more regulation of the sector. Moreno, a former luxury car dealer, founded a blockchain company and has been a vocal advocate for the technology.
Among the changes that could be revisited in the next Congress is a bill that would shift some federal oversight of the industry from the SEC to the Commodity Futures Trading Commission, which would reduce oversight. Some critics argue that it is possible.
In May, the House of Representatives approved the CFTC as the primary regulator of digital assets by a large bipartisan margin. Although the bill failed to gain approval in the Senate, industry insiders say widespread support in the House and increased industry campaign spending will make crypto a political force for candidates, including those seeking the presidential office. He claims that this helped convey the country’s rise as a global leader.
Industry groups say they are not trying to circumvent regulation, but instead want greater transparency as their businesses grow.
“To build, you need to know what the rules are that govern what you’re building,” said Colin McLaren, director of engagement at the Cedar Innovation Foundation, a cryptocurrency nonprofit. says.
Consumer groups are concerned that the legislation sought by the industry could leave consumers short on protections, with an onslaught of political spending this year raising alarm over the new influence of a single sector. It says that there are.
Robert Wiseman, co-director of the left-wing group Public Citizen, said: “The election made it clear that the industry is working with politicians to support less safe products that have no proven economic purpose.” “It means they are prepared to spend huge sums of money to bring the US to its knees.” statement.
The industry has signaled it intends to have a lasting presence in Washington.
FairShake officials said the company and its affiliated super PAC have already raised $78 million for the 2026 midterm congressional elections, which are still two years away. This includes $30 million in leftover political funding from this year’s contest, as well as initial funding from the Andreessen Horowitz firm and Coinbase, one of the industry’s largest trading platforms.
Kara Calvert, head of U.S. policy at Coinbase, said the sector wants to ensure continued support for its policies. “We have to invest every year and we have to make sure Congress understands the importance of this industry,” she said.
CNN’s David Wright contributed to this report.
