U.S. crypto industry shifts strategy after Clarity Act fails, targets Senate elections

The U.S. cryptocurrency industry has begun placing more weight on election campaigns than on persuading Congress after Senate legislation was blocked.

On Oct. 1 (local time), blockchain outlet Decrypt reported that Stand With Crypto, a political advocacy group created by Coinbase in 2023, released its first list of endorsed Senate candidates.

The focus is the Senate. Stand With Crypto decided to back Republican Jon Husted in Ohio. His opponent, Sherrod Brown, previously led the Senate Banking Committee and has long been seen as a leading critic of the crypto industry. The group pointed to the prospect that, if Brown wins, he could again wield strong influence on committees dealing with rules for the industry as a backdrop to the election push.

In Iowa, the group backed Republican Ashley Hinson, and in New Hampshire it backed Democrat Chris Pappas. In the House, it decided to support Iowa Republican Mariannette Miller-Meeks and Alabama Democrat Shomari Figures, and it also signalled additional advertising in six districts. Stand With Crypto said it makes judgments based on candidates’ crypto policies, not party. The group previously backed 32 sitting House members in August.

The group does not directly donate political funds, but its influence is not small. Stand With Crypto’s executive director said its 3 million supporters are now fully focused on electing pro-crypto candidates. Candidates rated highly by the group also attract funding from crypto-oriented political action committees. Fairshake PAC launched a $30 million campaign targeting Sherrod Brown. Total crypto political spending for the full election cycle is nearing $200 million.