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Crypto’s relationship with Washington is rapidly evolving as the industry assumes a more assertive role in US politics, signaling a shift from outsider status to growing influence in the federal landscape. This week on Byte-Sized Insight, we examine how lobbying, political spending, and access are reshaping crypto’s presence on Capitol Hill and what it may mean for decentralization, market competition, and future politics.
Presidential pardon
The recent presidential pardon of Binance co-founder Changpeng Zhao catalyzed the conversation, prompting an examination of whether crypto’s expanding political footprint is driving the results. While some industry figures have framed the case as government overreach, critics have pointed lobbying pressure and high-level connections as evidence of swelling influence.
Against that backdrop, crypto advocacy in Washington has accelerated dramatically. According to data shared with Cointelegraph, lobbying expenses by crypto-aligned entities have increased sharply since 2021.
“We really saw, I would say, in 2021 is where we really started to see it really jump,” said Brendan Glavin, director of insights at OpenSecrets. “Before that, the industry … had not spent more than $2.5 million in a year, then in 2021 it jumped to eight and a half.” Glavin said it has scaled exponentially since then.
Lobby equals maturity
Glavin noted that the model mirrors the trajectory of other emerging sectors that are gaining regulatory attention.
“When that happens, then people start talking about regulation and things that are going to affect how the industry works. And that’s when you see industry leaders start saying, oh, well, we need to get involved in this Washington game.”
That involvement is no longer limited to traditional lobbying. In the 2024 election cycle, crypto groups have adopted a campaign-centric strategy.
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“What the crypto interest did in 2024 is say, well, we’re not going to give money to candidates … our main focus is going to be that we’re going to form our super PAC,” Glavin said. Fairshake, the largest crypto PAC, raised more than $260 million during the 2023-24 election cycle and spent $195.8 million, according to Open Secrets. data.
New developments suggest the trend may accelerate. Beyond PACs, stablecoin issuer Tether plans to establish an American entity capable of direct political donations before mid-2026.
Meanwhile, Bloomberg report shows that the industry has accumulated about $263 million in anticipated political capital for the cycle, rivaling traditional power sectors such as Big Oil.
Such activity raises concerns about the concentration of influence, especially as well-financed players gain access that smaller builders may lack.
“It creates a situation where the existing players … are only able to centralize their control because they have the ability to hire people or the ability to make their voice heard,” warned Glavin.
Listen to the full episode of Byte-Sized Insight for the full interview on Cointelegraph Podcasts page, Apple Podcasts o Spotify. And don’t forget to check out Cointelegraph’s full list of other shows!
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