Cryptocurrency lobbying surges as industry gains political foothold in Washington

The relationship between cryptocurrencies and Washington is rapidly evolving as the industry takes a more active role in U.S. politics, marking a shift from outsider status to growing influence across the commonwealth. This week on Byte-Sized Insight, we look at how lobbying, political spending, and access are reshaping the presence of cryptocurrencies on Capitol Hill and what that means for decentralization, market competition, and future policy.

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The recent presidential pardon of Binance co-founder Qiao Changpeng sparked this debate, beginning scrutiny of whether cryptocurrencies’ growing political footprint is driving the results. Some industry insiders branded the incident a case of government overreach, while critics pointed to lobbying pressure and high-level connections as evidence of growing influence.

Against this background, cryptocurrency advocacy efforts in Washington are accelerating dramatically. Lobbying spending by crypto-related organizations has increased sharply since 2021, according to data shared with Cointelegraph.

“I would say we really started to see growth in 2021,” said Brendan Glavine, Director of Insights at OpenSecrets. “Prior to that, industry spending was only around $2.5 million a year, and in 2021 it jumped to $85,000,” Glavine said, adding that it has risen exponentially since then.

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Glavine noted that this pattern mirrors the trajectory of other emerging sectors that are attracting regulatory attention.

“As soon as that happens, people start talking about regulation and things that affect how the industry operates. And that’s when industry leaders start saying, oh, we need to be in this Washington game.”

Its involvement is no longer limited to traditional lobbying. For the 2024 election cycle, cryptocurrency groups adopted a campaign-focused strategy.

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“Despite what the crypto interest has said in 2024, we are not going to give money to candidates…Our main focus will be to form our own super PAC,” Glavine said. FairShake, the largest crypto PAC, raised more than $260 million and spent $195.8 million during the 2023-24 election cycle, according to data from OpenSecret.

New developments suggest this trend may accelerate. Beyond a PAC, stablecoin issuer Tether is considering establishing a U.S. corporation to allow direct political donations ahead of the 2026 midterm elections.

Meanwhile, the industry has amassed about $263 million in expected political capital heading into this cycle, on par with traditionally powerful sectors such as Big Oil, according to a report by Bloomberg.

Such activities raise concerns about concentration of influence, especially as well-funded players gain access that smaller builders do not have.

“It creates a situation where existing players try to centralize control because they have the ability to hire people and have the ability to make their voices heard,” Glavine warned.

For the full interview, listen to the full episode of Byte-Sized Insight on Cointelegraph’s podcast page, Apple Podcasts, or Spotify. Don’t forget to check out Cointelegraph’s full lineup of other shows.

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