Key Points

• Cryptocurrency-related groups invested $176 million in over 100 elections.
• Coinbase and Ripple have supported influential political spending networks
• The " CLARITY Bill" remains stalled after failing in the Senate vote.

On the eve of the mid-term elections on November 3rd, the cryptocurrency industry spent approximately $176 million in an attempt to influence over 100 U.S. congressional elections; meanwhile, its most important legislative priority—the CLARITY Act—is still stalled in Washington.

A survey by Reuters found that as of October 20, Fairshake and its affiliated political committees had spent a total of approximately 150.8 million US dollars, while other cryptocurrency groups invested an additional 25 million US dollars in election spending.

This move marks a significant upgrade in the political influence of the crypto industry. Coinbase, Ripple, and venture capital firm Andreessen Horowitz are all among the most well-known financial supporters of the industry.

However, these expenditures did not lead to the passage of comprehensive federal cryptocurrency legislation.

The Encryption Political Action Committee spent millions of dollars, yet the "_CLARITY_ Act" has still not made any progress.

The political strategy of this industry is centered around Fairshake. Fairshake is a super political action committee that spent approximately 196 million dollars during the 2024 electoral cycle.

Fairshake indicates that in the primary elections or special elections of 2026, 53 out of the 58 candidates they supported won the election, but these victories do not guarantee a favorable legislative outcome in the end.

These expenditures have also intensified the political battles surrounding candidates who are skeptical of proposals for regulating cryptocurrencies.

According to Reuters, in Ohio, political groups with a background in cryptocurrency have invested over $68 million in the Senate race between Democrat Sherrod Brown and Republican Jon Husted.

Even earlier, Fairshake's affiliated organization Protect Progress invested $1.5 million to oppose Texas Representative Al Green due to his stance on cryptocurrency legislation.

Why hasn't $176 million still managed to get the CLARITY bill passed?

The core goal of this industry remains to establish clearer federal regulations to standardize cryptocurrency exchanges, digital commodities, as well as to delineate the responsibilities between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

However, on September 15th, the CLARITY bill failed to make progress in the Senate, as members voted 49 to 50 against a procedural motion.

The vote that was not passed this time prevented the related debate from proceeding below the required threshold of 60 votes. This is not the final vote on the bill itself.

Differences over ethical provisions, financial safeguards, and regulatory oversight have long made negotiations between the two parties complex.

The legislative proposals supported by this industry will establish a framework that is more sustainable than administrative regulation, as administrative regulations may change in the future with the replacement of presidents.

For Ripple, this setback is particularly significant. After a long-term lawsuit with SEC, the company has been seeking a clearer regulatory environment for many years.

What do the U.S. midterms mean for crypto regulation?

The elections on November 3rd could reshape the legislative environment surrounding digital assets, especially in the event of a change in control of either chamber of Congress.

Fairshake supported candidates from both parties, although its most expensive intervention efforts in the Senate elections tended to favor Republicans or oppose Democratic candidates.

The efforts of this industry have also drawn criticism from campaign finance watchdog organizations. These organizations believe that the substantial expenditures by large corporations may distort elections and amplify the industry's influence over policy-making.

Meanwhile, even in the absence of comprehensive legislation, SEC continues to advance an alternative regulatory framework.