Crypto lobby readies $140 million war chest for Washington round two

Bitcoin dropped sharply last week, yet crypto money in Washington keeps rising. Political committees (PACs) and trade groups now hold about $140 million in cash, and they plan to spend fast as Congress hashes out rules on tokens, stablecoins, and market structure.

Bigger crypto budgets, sharper policy aims

Fairshake sits at the center. The super PAC spent more than $40 million in 2024, then refilled its coffers to over $140 million for the next cycle. Its network, which includes Protect Progress and Defend American Jobs, burned $135 million in the last race alone.

Stand With Crypto, a grassroots arm funded by Coinbase customers, launched its own PAC after rallying 440,000 members. The new committee backs Republicans and Democrats who promise clear crypto rules. Yes, both sides.

Lobbying dollars add another layer. The Crypto Council for Innovation booked seven outside firms this year, OpenSecrets data show, keeping spend on pace with 2024’s record $23 million. Similar figures appear for the Global Digital Asset Association. Big picture: more checks, more meetings, more noise.

Fresh players keep arriving. The American Innovation Project (AIP) launched in August, saying it will “educate” policymakers while enjoying tax perks other groups lack. Bank lobbies already push rewrites that would tilt rules toward Wall Street custodians, so crypto outfits feel pressed to counter. One aide murmured, off-record, “We’re drowning in white papers.”

Fairshake’s target list hints at tactics. After helping unseat ex-Banking Chair Sherrod Brown, the PAC may go after his Ohio comeback bid, insiders told Bloomberg. Pause. Politics can turn on a dime. The 2024 splurge worked, perhaps. Congress held its first “Crypto Week” in July, fast-tracking three bills despite pushback from Senator Elizabeth Warren. Results were mixed, however, and lobbyists say round two needs heavier artillery.

Winners, worriers, and the Web3 road ahead

Fairshake’s haul looks huge, yet presidential politics could dwarf it. Donald Trump now courts crypto donors at rallies and raised millions at Bitcoin 2024 in Nashville. If the campaign builds its own wallet, outside PACs may find themselves competing for the same coins.

Democrats feel the heat. Senator Tim Scott’s bipartisan market-structure push seeks enough blue votes to clear the 60-vote Senate hurdle. AIP says it will brief moderate Democrats who fear losing tech donors. Will it work? Maybe.

Bankers fight back. The American Bankers Association wants the GENIUS Act amended so only insured banks can issue stablecoins. Crypto groups call that a power-grab; ABA counters that reserves need guardrails. Classic turf war.

Regulators watch the money. The SEC tracks political donations tied to ongoing enforcement matters; internal memos leaked last month mention “perception risk” if accused firms influence lawmaking. Yet the agency lacks authority to curb super PAC cash. Friction remains.

Grassroots voices enter late. Local miners from Texas and Wyoming plan a “Hash-in” on Capitol Hill, lugging tiny rigs to demo real-world work. Cute stunt. It might land on TikTok, then vanish. However, lawmakers notice visuals more than PDFs.

Takeaways for crypto builders and traders

Supply of influence: PAC cash equals block space in politics. More funds, faster confirmations of friendly bills. Yet overspending risks backlash if voters smell pay-to-play.

Policy timeline: Senate gridlock can stall action into 2026. Lobby groups hedge with state-level pushes, such as Arizona’s mining-rights bill and New York’s BitLicense reform. Those moves cost less and show quick wins.

Market impact: Clarity on stablecoins could unleash billions in banking partnerships. Delay keeps U.S. firms offshore. Traders price this uncertainty; hence the choppy range around $108,000–$118,000 BTC.

Risk of overreach: A single scandal – think FTX-style – could sour Congress overnight. Lobbyists quietly stress internal compliance to donors, hoping to avoid deja vu.

One last tiny note. Patience