Crypto’s Midterm $200 Million Bet – Can they Buy Influence & CLARITY?

The crypto industry has spent a record amount of money to get involved with the 2026 mid-term elections in the US. While there may not be a direct benefit to Bitcoin on voting day, it provides companies with the opportunity to buy influence with lawmakers who will be responsible for setting out regulations for America’s digital assets.

As recently reported, the industry has spent around $176 million-$200 million on over 100 different campaigns. Cryptocurrencies are now a major player in this election. Will this huge investment finally provide the industry with the desired federal legislation?

Digital Asset Market CLARITY Act

The main bill we should be focusing on is the Digital Asset Market CLARITY Act. It is a market structure bill that will create clarity around digital assets and intermediaries. It will split the regulatory powers between the SEC and CFTC, and will include requirements around intermediaries. It is a vital bill for exchanges and platforms as it will dictate who regulates them.

Despite having the industry’s support the bill is currently stalled. On the 15th September a procedural vote failed to pass due to not obtaining the necessary 60 votes (finished 49-50). While this is not a rejection to the bill and indicates that the road ahead will be challenging. The bill faces issues and cannot be described as a sure thing or a dead bill.

Who is Funding the Movement?

Fairshake and associated political action committees have been leading the movement in Washington, backed by industry firms including Coinbase, Ripple and Andreessen Horowitz. They have been very active in shaping the environment by supporting candidates.

Initially the movement was bipartisan, with Fairshake and their super PACs supporting 33 different candidates in the House of Representatives (19 Republicans & 14 Democrats). All supported the same policies around key areas for the industry. There was no bias towards any parties.

However, just because both parties are funding the candidates, does not mean there will be bipartisan legislation. With the CLARITY Act being blocked by Senate Democrats, Fairshake have changed their approach. They have reportedly stopped supporting any candidates in the Senate and are now exclusively supporting Republicans.

Not Just Pro-Crypto

Those in favour of the CLARITY Act claim it will create a predictable federal system. Those against the CLARITY Act are concerned that the new bill removes protections. As it moves responsibilities to the CFTC there are concerns that federal regulations will become less strict and less power will be given to the states to enforce more protective rules. Additionally, the Senate Democrats are concerned about not having rules in place to ensure ethical conduct, particularly from top officials who may make money via crypto ventures. This shows that pro-crypto vs anti-crypto is an oversimplification. While politicians may support the digital asset framework, they may have strong opinions on who should be enforcing the rules, protecting consumers, and managing conflicts of interest.

Congressional Control

Having control over Congress will determine who leads on the committees, what the priorities will be and how intense the industry scrutiny will be. Having control over Congress will determine who leads on the committees Having control over Congress will determine priorities Having control over Congress will determine how intense the industry scrutiny will be. If there is a change in power this could delay the timeline of the CLARITY Act or cause increased investigations into crypto businesses. If there is a change in power this could delay the timeline of the CLARITY Act or cause increased investigations into crypto businesses. However, even if they maintain majority in Congress it does not guarantee that the disagreements will be resolved or that they will have the votes needed to move forward with the bill.

The legislative timeline adds extra pressure. The legislative timeline adds extra pressure. If the bill does not move forward before the end of this term everything will need to start again from scratch in the next Congress.

The Real Test

The key developments will not happen until the campaigning is over. Industry observers should look out for:

Revival – Can they negotiate with lawmakers again to move the CLARITY Act forward?

Committee Leadership – Who will be leading on the committees?

Compromise – Can they create a new proposal that addresses ethical concerns and consumer protection?

Coalition – Can they bring together enough of a voting bloc with those they campaigned with?

While winning elections can provide opportunities it does not create laws. The real test for the industry is to prove that their huge investment will result in long-lasting regulations.