COLUMBUS, Ohio (AP) — In a luxurious five-star resort nestled in Jackson Hole, Wyoming, the cryptocurrency sector marked a significant milestone in its engagement with U.S. lawmakers. With several of its key objectives swiftly advancing through Congress, one senator openly acknowledged the shift in political dynamics. Senator Tim Scott, the chair of the Senate Banking, Housing and Urban Affairs Committee, attributed this newfound momentum to the political landscape changes following the recent elections. “I have to say,” remarked Scott, R-S.C., “thank you all for helping to remove Sherrod Brown,” referring to the Ohio Democrat who lost his Senate seat in 2024 to Republican Bernie Moreno. This comment elicited laughter and applause from attendees. “The industry literally put Bernie Moreno into the Senate,” he continued, as highlighted in footage from the Wyoming Blockchain Symposium. In the 2024 election cycle, crypto-related interests invested over $40 million in Moreno’s campaign, a figure that surpassed their contributions to any other Senate race by more than fourfold. Brown, who chaired the committee during the Democratic majority from 2021 to 2025, had been a vocal critic of cryptocurrencies. The financial backing for Moreno signaled a clear warning to politicians: oppose the crypto sector, and you may face consequences. As Brown seeks a comeback for a fourth term next year, Democrats are optimistic about their prospects in an election cycle devoid of former President Donald Trump at the forefront. However, with crypto’s increased financial clout this election cycle and a Congress that appears more favorable to the industry in Brown’s absence, the stakes are high.
### A Pro-Crypto Congress
This year has seen a remarkable turnaround in Congress, which is now more receptive to the cryptocurrency industry following a period of skepticism under the Biden administration. In quick succession, legislators have enacted laws that introduce new regulations and consumer protections for stablecoins—cryptocurrencies typically pegged to the U.S. dollar to mitigate volatility. A more comprehensive legislative initiative aimed at clarifying the regulatory framework for digital assets is also progressing through Congress. Former President Trump has firmly aligned himself with the crypto movement, advocating for the U.S. to become the “crypto capital of the world.” His family has benefited from the industry, holding a notable stake in World Liberty Financial, a crypto venture that launched its own stablecoin this year. Proponents assert that the recent policies will enhance oversight and provide consumer protections, thereby legitimizing a sector that has been marred by volatility and controversy, such as the collapse of the FTX exchange and the conviction of its founder, Sam Bankman-Fried. “Americans are losing money daily to crypto scams and fraud,” Brown remarked in a statement following Bankman-Fried’s conviction. “We must clamp down on abuses and ensure the crypto sector doesn’t dictate its own regulations.” During his tenure as Senate committee chairman, Brown consistently voiced concerns regarding cryptocurrencies, arguing that they could facilitate money laundering. He conducted numerous hearings addressing the potential negative impacts of digital currencies on consumers and their use in funding illicit activities. Throughout the 2024 election cycle, Brown stood firm despite facing substantial financial opposition from the crypto industry. Ultimately, he lost to Moreno, who has connections to the crypto world, by a narrow margin of just over 3.5 percentage points. “The outcome of Sherrod Brown’s race clearly illustrated that being anti-crypto is politically detrimental,” Armstrong noted.
### Crypto Spending Reshapes Politics
In the 2024 election cycle, the cryptocurrency sector invested upwards of $130 million in congressional races, including $40 million in Ohio and $10 million each in Arizona and Michigan. The advertisements primarily focused on endorsing favored candidates rather than directly mentioning cryptocurrency. These efforts largely proved successful. “Washington received a clear message: opposing crypto can jeopardize your political career,” Armstrong stated on social media following Brown’s defeat. This time around, Brown’s rhetoric towards cryptocurrencies appears to have shifted. “Cryptocurrency is an integral part of America’s economy,” he expressed in a statement. “My objective is to ensure that as cryptocurrency usage grows, it creates opportunities for Ohioans without exposing them to undue risk.” It remains uncertain whether Brown will face renewed challenges. Pro-crypto political action committees are amassing hundreds of millions of dollars, many of which have close ties to Trump and conservative members of Congress. Brown is expected to compete against Republican Senator Jon Husted, who was appointed to fill Vice President JD Vance’s former seat. Husted has been a consistent supporter of the crypto industry and endorsed the GENIUS Act, which regulates stablecoins. A significant portion of the funds directed against Brown last year came from Fairshake, a super PAC backed by Coinbase and other entities. The group reported having $141 million in cash reserves as of July, already exceeding its expenditures in the 2024 cycle. Coinbase and the PAC have indicated their support for candidates from both parties, provided they are pro-crypto. However, they have not publicly disclosed their intentions regarding spending against Brown. “Last year, voters clearly communicated that the agendas of Sherrod Brown and Elizabeth Warren are misaligned with Ohio values,” stated Fairshake spokesperson Josh Vlasto. “We will continue to support candidates who are pro-crypto and oppose those who are not—both in Ohio and nationwide.” Warren is a Democratic senator representing Massachusetts. Fairshake is not the only organization mobilizing funds; crypto entrepreneurs Tyler and Cameron Winklevoss have initiated a $21 million effort to support crypto-friendly Republicans, while another group, the Fellowship PAC, has pledged $100 million for the next election cycle.
### A New Crypto Constituency
Proponents of cryptocurrency believe that their growing political influence stems more from voter sentiment than from financial contributions. “There is a significant number of individuals eager to see regulations for crypto implemented in the U.S., and many of them are crypto users themselves,” Armstrong remarked. While a considerable portion of Americans views cryptocurrency as a risky investment, a recent Pew Research Center poll indicated that 55% of U.S. adults categorize it as a “very risky” option. Although the percentage of adults currently owning cryptocurrencies remains relatively low, younger males, particularly those under 50, show a higher propensity to invest. According to a Gallup poll from June, approximately 25% of men in that age bracket own cryptocurrency, and they are also more likely to consider future investments, with only 44% stating they are “not interested in ever buying” digital assets—significantly lower than the skepticism observed among older demographics and women of all ages. This enthusiasm, coupled with substantial industry funding, has enabled cryptocurrency to evolve from a niche technology to a formidable political force, now firmly embedded within the American financial and political landscape.
