With the first primaries of the US midterm elections now underway, the cryptocurrency industry is injecting millions of dollars into congressional races across the country. Illinois, in particular, is attracting the bulk of this campaign financing, with Arkansas, Alabama, and Texas also seeing significant contributions.
According to Federal Election Commission data, crypto PACs, firms, and investors have already spent $32 million supporting industry-friendly candidates and opposing their critics. This spending is building on the enormous financial footprint the crypto sector left in the 2024 presidential election.
A significant portion of this funding comes from Fairshake, a crypto-backed Super PAC. FEC filings indicate that heading into 2026, Fairshake was holding over $193 million in cash, making it the most heavily funded Super PAC of this election cycle. The organization’s influence is substantial, as it seeks to cement the strides made during the Trump era and safeguard against potential regulatory overreach.
“This is the biggest legislative agenda that crypto has ever seen. So, it’s the most critical time to make sure that we have pro-crypto voters in Congress because there’s a lot that needs to get done,” said Summer Mersinger, CEO of the Blockchain Association, highlighting the urgent nature of the industry’s push for favorable legislation.
The most pressing legislative priority for the crypto sector is the passage of the Clarity Act. This bill aims to establish a regulatory framework that would mitigate legal risks and potentially unleash institutional investment. However, the bill has stagnated in the Senate, caught in a tangle of negotiations, and must advance to a floor vote by July to have any chance of progressing.
A boost for Republicans
The crypto industry’s influence is evident as it has already invested in 28 federal battlegrounds this election cycle. While lobbyists emphasize a bipartisan approach, the data shows a clear trend: a majority of funding is flowing to Republican candidates. Over the previous cycle, about two-thirds of spending was directed toward supporting Republicans while opposing Democrats.
“Spending will likely lean towards Republicans again this cycle, who have historically been more supportive when it comes to crypto,” noted an anonymous lobbyist, emphasizing a strategic alignment of interests.
Key committees, such as the House banking committee, which governs the financial services sector, are led by figures like Republican French Hill, a strong advocate for crypto, and Democrat Maxine Waters, a notable critic. If Democrats regain control of the House, Waters is poised to become chair, a scenario that could hinder pro-crypto legislation.
Hill notably benefited from a $4 million boost from the crypto sector ahead of his primary in Arkansas, ultimately winning decisively.
In the upcoming elections, candidates identified as “pro-crypto” number around 500, influencing how lobbyists prioritize competitive races and members of committees that oversee market structure.
“We’re not just blindly supporting individuals; this is a strategic deployment of funds in ways that maximize future industry performance,” said Colin McLaren, head of government relations at Solana Policy Institute. He emphasized that Fairshake is likely to concentrate its efforts in the final weeks of close races where there’s a strong crypto voting record.
The biggest midterm crypto battleground: Illinois
Illinois has emerged as the major focus of crypto fundraising, having drawn $14.2 million ahead of the March 17 primary. A central target is the lieutenant governor, Juliana Stratton, who is running for a US Senate seat. Fairshake, alongside its affiliates, has funneled $10 million into attack ads aimed at her campaign.
The ads include claims questioning Stratton’s integrity and labeling her part of the “Madigan machine,” referring to former House Speaker Michael Madigan, currently imprisoned for corruption. However, there are no records indicating Stratton’s involvement in his alleged misdeeds.
Stratton has pushed back, dismissing the campaign as a “Trump-aligned Super PAC.” Although she lacks a record on crypto, her campaign is bolstered by Illinois Governor J.B. Pritzker, who has contributed $6 million to her cause through Super PAC support. Pritzker has historically signed laws that endorse state-level crypto regulations, presenting a challenge to the federal clarity sought by the industry.
“While Trump lets crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” Pritzker stated in a recent post, underlining the divide between state and federal crypto policies.
Stratton’s primary competitor, Democratic Representative Raja Krishnamoorthi, has garnered $25,300 from the crypto sector and has expressed robust support for establishing a pro-innovation regulatory framework for digital assets, giving him favor in the eyes of industry advocates.
In Chicago, Fairshake has allocated almost $2.5 million to attack ads against State Representative La Shawn Ford, who voted for state-level crypto regulations that the industry claims undermine their efforts in Congress. Ford has felt the brunt of this campaign, stating, “They’ve been blasting me nonstop – on TV, radio, mailers, you name it.” Defending himself, Ford highlighted that the attacks revolve around a federal tax fraud charge that was ultimately dropped.
The retiree Representative Danny Davis, endorsing Ford, remarked, “It’s a big effort to change people’s minds based on untrue statements,” showcasing the growing complexity of political contests involving crypto interests.
Cashing in
Representative Barry Moore from Alabama stands out as the industry’s most heavily funded candidate, set to receive a remarkable $5 million from Fairshake’s pro-crypto PAC for his Senate campaign in an increasingly competitive race.
Candidates like Representative Christian Menefee in Texas, who faced off against Al Green in a Democratic primary, have also recognized the influx of funding from the crypto sector. Despite a lack of prior crypto advocacy, Menefee gained over $1.5 million shortly after expressing support for developing blockchain innovation in the U.S.
Jessica Steinmann, a Texas Republican, also positioned herself as a “strong supporter of digital assets” and received nearly $800,000 in support, ultimately securing her win in the Republican primary.
Lessons from 2024
As crypto lobbyists strategize, they’re aiming to replicate their success from the 2024 federal elections, where Fairshake and its associates spent approximately $130 million, contributing to an impressive success rate of over 90% in congressional races they influenced.
Candidates involved in key congressional committees overseeing financial regulation are particularly likely to receive substantial funding. For instance, Democrat Sherrod Brown of Ohio is expected to face renewed scrutiny and potentially financial retaliation due to his previous stance against the industry during his time as Senate Banking Committee chair.
Brown’s campaign, having raised $14 million last year in anticipation of another expensive race, demonstrates his recognition of the formidable opposition that crypto represents. Yet, questions remain about his ability to shift his previously critical stance against the industry.
Amid all this, the crypto industry’s connections to Trump have deepened, with over $50 million funneled to his main Super PAC, which now oversees an unprecedented $310 million in cash, emphasizing the financial clout of the crypto sector as it seeks to shape the future landscape of American politics.
