Original authors: Annie Massa, Olga Kharif, David Pan, Bloomberg

Original translation by Luffy, Foresight News

Following its success in the 2024 US presidential election, the crypto industry is ramping up its efforts in the 2026 midterm elections.

According to Federal Election Commission (FEC) documents and public statements, some cryptocurrency-focused Super PACs (SPACs) are raising approximately $263 million. This amount, according to OpenSecrets data, is nearly double the total spending of the largest SPAC, Fairshake 2024, and slightly more than the total spending of the entire oil and gas industry in the last election cycle.

Following a major investment in the crypto industry in 2024, Republicans gained control of both the Senate and the House of Representatives, and lawmakers passed numerous crypto-industry-supporting bills and appointed pro-crypto regulators to key positions. This influence was evident again last week when President Donald Trump pardoned Changpeng Zhao, co-founder of cryptocurrency exchange Binance, after Zhao pleaded guilty to violating U.S. anti-money laundering laws and was sentenced to four months in prison during the Biden administration.

Legislative victories and the Trump family's embrace of cryptocurrencies have prompted some newly formed SPACs to deviate from their previous strategies and more explicitly support the Republican Party, helping the party consolidate its control of Congress.

The crypto industry has also leveraged political donations to advance a series of legislative and regulatory priorities, with the recent core focus being the Cryptocurrency Market Structure Act . This act would radically reform the regulatory framework for digital assets and potentially grant greater authority to the more crypto-friendly Commodity Futures Trading Commission (CFTC).

Midterm election budgets for each SPAC

To push for the bill's passage, about 12 top executives from the crypto industry traveled to Washington last week. Despite ongoing negotiations regarding the government shutdown, they held talks for over an hour with a group of senior Republican senators and had even longer meetings with Democratic senators, including Minority Leader Chuck Schumer.

"The industry's success in 2024 has built a roadmap that has proven cryptocurrency has a voice and can influence elections, whether you're an industry CEO or an ordinary user," said Cody Carbone, CEO of the Washington lobbying group The Digital Chamber. "More players will join in the future, and more money will be invested."

Cryptocurrency companies and executives have provided funding to policymakers and Trump's projects in various ways. Some cryptocurrency companies have already struck deals with the Trump family's cryptocurrency businesses, while others have donated to the January inauguration and the June military parade. In addition, several companies are funding the $300 million new White House banquet hall. According to the White House, these include Coinbase, Ripple, and the U.S. subsidiary of stablecoin giant Tether.

U.S. President Donald Trump showcased a model of the planned Arc de Triomphe at a dinner with business executives, a dinner that highlighted the construction project for the new White House banquet hall.

Besides the White House, SPACs are also a focus of attention for members of Congress, who have the power to enact industry-related legislation.

According to public statements and FEC data, Fairshake remains the largest crypto SPAC, holding $141 million in funds as of the end of June. OpenSecrets data shows that the organization spent over $133 million supporting crypto-friendly candidates in 2024, making it one of the highest-spending organizations on a single issue in the last election cycle. Its supporters include major US crypto companies such as Coinbase and Ripple, as well as venture capital firm Andreessen Horowitz.

In 2024, Fairshake and its two affiliated groups attempted to frame crypto-friendly policy as a bipartisan issue. For example, the organization invested approximately $10 million each in Democrats Elisa Slotkin and Ruben Gallego, helping them win Senate seats in Michigan and Arizona, respectively. These two senators were among the 18 Democratic senators who voted for the GENIUS Act, which paved the way for wider integration of stablecoins favored by the crypto industry into the financial system.

Even in 2024, Fairshake spent most of its funds during the election campaign supporting Republicans, including spending $40 million to successfully defeat then-Senate Banking Committee Chairman Sherrod Brown, a Democrat from Ohio.

In November 2024, Senate candidate Elisa Slotkin addressed supporters at an election night event in Detroit.

This time, there are more SPACs, and some of them have a clearer stance on aligning with Republican candidates.

World Liberty Financial, a crypto project co-founded by the Trump family and the family of presidential envoy Steve Witkoff, announced last month that it would support the Digital Freedom Fund SPAC. The PAC, established in August by Gemini co-founders Tyler and Cameron Winklevoss, stated in a press release on the X platform that they would donate $21 million in Bitcoin to support advocates of President Trump's crypto agenda in the primaries and midterm elections. According to sources, the organization plans to target Sherrod Brown, who is seeking a return to the Senate.

In July, Gemini co-founders Cameron Winklevoss (left) and Taylor Winklevoss (right) spoke with President Donald Trump at the signing ceremony of the GENIUS Act at the White House.

Another newly formed group is First Principles Digital PAC, which describes itself as a "Republican-led, Republican-focused organization dedicated to promoting pro-crypto leaders." Led by Republican strategist Jason Tillman, it was formed after the 2024 elections, and FEC filings show it had approximately $954,100 in cash reserves as of the end of June. The group has already endorsed Mike Rogers, who will run for a Senate seat in Michigan in 2026.

Recently, Fellowship PAC was announced in September with a pledge of $100 million. Its donors have not yet been disclosed, but preliminary documents indicate that its treasurer is an executive at the financial firm Cantor Fitzgerald—a firm previously led by Trump administration Commerce Secretary Howard Lutnick.

Representatives from the Digital Freedom Fund, Fellowship, Fairshake, and First Principles Digital PAC declined to comment.

The biggest variable is Tether. This El Salvador-based stablecoin company has close ties to Canto Fitzgerald, and The New York Times reports that backers of the Fellowship PAC are expected to include Tether, which recently established a U.S. entity.

In August of this year, Tether announced that it would launch a product in the United States and hired Bo Hines, Trump’s former core crypto policy advisor, to lead the related work.

Tether CEO Paul Aldoino stated in an interview last week that the company is in talks with several SPACs (Special Purpose Acquisition Companies). Foreign companies are currently prohibited from donating to SPACs, but Tether's new foothold in the United States may qualify it for such donations.

On October 2nd, Tether CEO Paul Aldoino spoke at the Token2049 conference in Singapore.

Democrats are increasingly concerned about the funding offensive from the crypto industry.

Eric Powersboff, who previously worked for the campaigns of Elizabeth Warren and Hillary Clinton, serves as the executive director of the newly formed group Open Frontier, which aims to bring more progressive voices together with the crypto industry.

"Many people in my camp are still trying to understand this industry," Bowersbuff said. "There is no reliable voice right now, and trust in the crypto industry has been severely damaged."

Last week, when crypto executives traveled to Washington to meet with lawmakers, partisan differences were evident. Sergey Nazarov, co-founder of Chainlink Labs, who attended the meeting, said that Republicans, including Senator Tim Scott, chairman of the Senate Banking Committee and a Republican from South Carolina, clearly expressed alignment with industry priorities; while Democrats raised sharp questions about the use of cryptocurrencies in money laundering and decentralized finance.

"I don't think Democrats really understand our industry yet, and they're worried about illicit finance," Nazarov said.

Another viewpoint suggests that the industry's massive funding and newly acquired political influence are forcing at least some Democrats to re-evaluate their stances. Even Brown, who previously held a hardline position, has softened his criticisms.

"Cryptocurrency has become part of the U.S. economy and is gaining increasing popularity in Ohio and across the country," Brown's campaign manager, Patrick Eisenhower, said in a statement. As more people adopt digital assets, Brown wants to ensure that "it expands opportunities, improves the lives of Ohioans, and doesn't put them at risk."

In 2024, Senator Sherrod Brown campaigned for the Ohio Senate.

Crypto industry executives' demands go beyond the Republican Party's desire to pass a market structure bill before the midterm elections. They also include adjustments to cryptocurrency tax policies, anti-money laundering and sanctions rules, and a regulatory framework for decentralized exchanges.

Some donors are also targeting state and local elections, such as the New York City mayoral race. Crypto entrepreneur Brock Pierce donated over $1 million to groups supporting Eric Adams just days before he withdrew from the race.

According to Nazarov of Chainlink Labs, there's a common thread in these meetings with politicians. "They recognize the enormous economic value of this industry and therefore need to figure out how to respond," he said. "The industry will continue to grow, and they need to develop the right strategies."