The cryptocurrency industry has made significant strides in influencing Washington politics, with leading super PACs investing $131 million in congressional races during the recent election cycle. The goal was to elect pro-crypto lawmakers and shape policies that favor the industry's interests.
Individual billionaires with crypto investments also played a role, contributing millions to support candidates aligned with their views. Now, these stakeholders are focused on reshaping how the government regulates their businesses.
One key objective is to influence the selection of a crypto-friendly Securities and Exchange Commission chair to replace Gary Gensler, whose enforcement actions under the Biden administration drew criticism from cryptocurrency CEOs. Industry groups are advocating for a regulatory framework that they believe will integrate crypto into the mainstream of the US financial system.
The industry's efforts seem to have paid off, as a tracker by Stand with Crypto shows that 274 pro-crypto candidates were elected to the House and 20 to the Senate. Super PACs supporting crypto interests backed candidates from both major parties, indicating bipartisan support for the industry.
This political influence marks a significant turnaround from just two years ago when the industry faced challenges following the collapse of the FTX crypto exchange. Lawmakers scrambled to distance themselves from campaign donations linked to the exchange's leader, Sam Bankman-Fried, who is now serving a lengthy prison sentence for fraud.
The cryptocurrency industry's growing presence in Washington reflects its determination to shape policies and regulations that will support its growth and integration into the broader financial landscape.
