Crypto’s Relationship with Washington: From Outsiders to Influencers
Crypto’s relationship with Washington is rapidly evolving as the industry takes a more assertive role in US politics. This shift signals a move from outsider status to growing influence across the federal landscape. This week on Byte-Sized Insight, we examine how lobbying, political spending, and access are reshaping crypto’s presence in Capitol Hill — and what that may mean for decentralization, market competition, and future policy.
**Presidential Pardons and Political Influence**
The recent presidential pardon of Binance co-founder Changpeng Zhao acted as a catalyst for conversation, prompting scrutiny over whether crypto’s expanding political footprint is driving such outcomes. While some industry figures framed the case as government overreach, critics pointed to lobbying pressure and high-level connections as evidence of the sector’s swelling influence.
Against this backdrop, crypto advocacy in Washington has accelerated dramatically. According to data shared with Cointelegraph, lobbying expenditures by crypto-aligned entities have climbed sharply since 2021.
“We really saw, I’d say, in 2021 is where we really started to see a significant jump up,” said Brendan Glavin, director of insights at OpenSecrets. “Prior to that, the industry hadn’t spent more than about $2.5 million in a year. Then in 2021 it jumped up to $8.5 million.” Glavin noted that lobbying expenses have continued to climb exponentially since then.
**Lobbying Marks Industry Maturity**
Glavin highlighted that this pattern mirrors the trajectory of other emerging sectors as they gain regulatory attention.
“As soon as that happens, people start talking about regulation and things that will affect how the industry operates. That is when industry leaders say, ‘Oh, we need to get involved in this Washington game,’” he explained.
This involvement is no longer confined to traditional lobbying efforts. In the 2024 election cycle, crypto groups adopted a more campaign-focused strategy.
**The Rise of Crypto Super PACs**
“What crypto interests did in 2024 is say, ‘Well, we’re not just going to give money to candidates. Our main focus is going to be forming our own super PAC,’” Glavin said.
Fairshake, the largest crypto super PAC, raised over $260 million during the 2023-24 election cycle and spent $195.8 million, according to OpenSecrets data.
New developments suggest this trend may accelerate. Beyond PACs, stablecoin issuer Tether is considering establishing a US entity capable of direct political donations ahead of the 2026 midterms. Bloomberg reports that the crypto industry has amassed approximately $263 million in anticipated political capital for this cycle—rivaling traditional powerhouse sectors such as Big Oil.
**Concerns Over Concentration of Influence**
Such concentrated activity raises concerns about the consolidation of influence, especially as well-funded players gain access that smaller builders may lack.
“You create a situation where the existing players are just going to centralize their control because they have the ability to hire people or make their voices heard,” Glavin warned.
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For a full discussion on this topic, listen to the latest episode of Byte-Sized Insight on Cointelegraph’s Podcasts page, Apple Podcasts, or Spotify. Don’t forget to explore Cointelegraph’s full lineup of other shows for more in-depth analysis.
https://bitcoinethereumnews.com/crypto/crypto-lobbying-accelerates-amid-rising-political-influence-in-washington/?utm_source=rss&utm_medium=rss&utm_campaign=crypto-lobbying-accelerates-amid-rising-political-influence-in-washington