Big Crypto has emerged as a powerful force in Washington, with firms including Coinbase and Ripple using political spending and industry lobbying to influence policy and elections.
The industry’s growing influence was demonstrated last week when its largest super PAC announced plans to spend $30 million in an Ohio Senate race. The campaign is aimed at opposing the Democratic nominee, who has taken a sceptical view of cryptocurrency.
The move comes as the crypto industry seeks to establish itself as a permanent part of the US political landscape, following its arrival as a major force during the 2024 election cycle.
Crypto’s growing involvement in Washington marks a sharp departure from the ideals associated with Bitcoin’s creation. Satoshi Nakamoto’s 2008 paper presented the digital currency as a form of peer-to-peer electronic cash, developed by libertarians distrustful of banks and even more wary of government.
For years, many blockchain executives kept their distance from the capital. But that position became increasingly difficult to maintain as regulators took a more aggressive approach to the sector.
Crypto companies including Coinbase and Ripple believed that Gary Gensler, then chairman of the Securities and Exchange Commission, was pursuing a campaign that threatened the industry’s survival. Their response was to adopt the tactics of established Washington interests, including political donations, lobbying and the recruitment of former regulators.
Crypto’s political strategy under scrutiny
The industry’s new political influence has also exposed weaknesses in its organisation. The Blockchain Association, its largest trade group, is searching for a new leader after its current head stepped down after little more than a year in the role.
The departing chief, a former Commodity Futures Trading Commission official, was paid at least $500,000 a year, highlighting the scale of the resources now available to crypto’s Washington operation.
Yet the decision to commit $30 million to an Ohio race may prove strategically risky. The targeted candidate is hostile to crypto, but the spending comes as his Democratic Party is seen as capable of regaining control of one or both chambers of Congress.
The industry therefore faces a challenge beyond finding politicians willing to accept its money. It must develop a coherent strategy for operating as a powerful participant in Washington, rather than as an outsider fighting a hostile government.
That shift also brings greater responsibility as crypto companies seek a larger role in the global financial system. The sector faces an additional image problem: several polls cited in the discussion suggest cryptocurrency is less popular with the public than Big Oil or Big Pharma.
Crypto executives may still wish to present themselves as rebellious newcomers. But their expanding political influence means they are increasingly being judged as an established industry, with the obligations that come with power.
