The crypto industry spent $131 million in the midterms to elect dozens of pro-crypto lawmakers. Now they want to change how Washington treats their business

The cryptocurrency industry's leading super PACs plowed $131 million into congressional races this election cycle to help elect dozens of pro-crypto lawmakers, while individual billionaires with crypto interests spent millions to help return Donald Trump to the White House.

The cryptocurrency industry's top super PACs poured $131 million into congressional races this election cycle to help propel dozens of pro-crypto lawmakers into office, while individual billionaires with crypto interests funneled millions to help return Donald Trump to the White House.

Now, they're poised to reshape how Washington treats their business.

Their goals include ensuring that Trump picks a crypto-friendly Securities and Exchange Commission chair to replace Gary Gensler, whose aggressive enforcement actions during the Biden administration have infuriated cryptocurrency CEOs. Industry groups are also lobbying Congress to enact a regulatory framework that they say is needed to usher crypto into the mainstream of the US financial system.

The industry could be well-positioned heading into the new session of Congress. A tracker run by a group called Stand with Crypto said 274 pro-crypto candidates had been elected to the House and 20 to the Senate this cycle. Crypto super PACs spent heavily on Republicans as well as key Democrats, including two who won open seats in the US Senate, Elissa Slotkin in Michigan and Ruben Gallego in Arizona.

Crypto's bipartisan political clout marks a stunning rebound from just two years ago, when the industry was reeling from the spectacular implosion of the troubled FTX crypto exchange. In its aftermath, lawmakers rushed to distance themselves from campaign donations from the firm's leader, Sam Bankman-Fried, who is now serving a 25-year prison term for defrauding customers and investors.

Bitcoin, the world's largest cryptocurrency, surged to record highs after Trump's win, in anticipation of more pro-crypto policies from his administration.

How Washington regulates the industry has vast implications for this burgeoning sector, along with the 52 million Americans who now hold digital assets.

“Crypto is a political force,” Kristin Smith, chief executive of the 98-member Blockchain Association, told CNN. “As a result of this past election, we’ll have the most pro-crypto Congress that has ever been elected but also the most pro-crypto administration that’s ever been in power.”

Smith said the industry is communicating with Trump's transition team “through various channels” to make its views known on personnel picks and other policy preferences.

“The strategy is to have as many conversations with as many people in the Trump orbit as possible so that everyone has an understanding of what the crypto industry is most interested in,” she said.

Currently, Smith said, the industry's leading choices for SEC chair include former SEC commissioner Dan Gallagher, now the chief legal officer at Robinhood, which has an arm that allows users to buy and sell crypto on its platform.

Paul Atkins, also a former commissioner of the SEC, who now runs a financial services consulting firm, is also seen as a top contender. Atkins serves on the advisory board of the Token Alliance, which promotes the use of digital assets. Neither Gallagher nor Atkins responded to inquiries from CNN.

Smith said the blockchain group also hopes to advance other changes, including potentially establishing a White House czar who can help orchestrate cryptocurrency policy across government agencies.

Trump and several key allies working on the transition have a decidedly pro-crypto bent. The former president, who as recently as 2021 appeared to dismiss Bitcoin as seeming “like a scam,” has become a convert. He's since had a licensing deal to sell NFTs or non-fungible tokens.

During an appearance at a Bitcoin conference over the summer, Trump made big promises – pledging to oust SEC chair Gensler and to make the US “the crypto capital of the planet.” (Gensler's term runs until 2026, but it is customary for SEC chiefs to resign when a new administration takes over.)

Trump also has promised to create a national cryptocurrency reserve.

Trump and his sons have also launched their own cryptocurrency business, World Liberty Financial. It's not clear how the president-elect intends to navigate potential conflicts of interest with this and other parts of his business empire – given his role in selecting the federal officials who will police the industry.

His conversion, in part, appears to have been driven by interest from his sons. During a livestream touting World Liberty Financial, Trump described his 18-year-old son, Barron, as a crypto fan.

Steve Witkoff, a close Trump friend and real-estate developer, also said he was involved in the venture.

Trump transition officials did not respond to CNN inquiries.

Other Trump allies also are bullish on digital assets, including multibillionaire Elon Musk – who plowed nearly $119 million into electing Trump and has been tapped to help lead a new Department of Government Efficiency whose abbreviation, DOGE, offers a play on Dogecoin, a cryptocurrency promoted by the mogul.

Howard Lutnick, who serves as co-chair of the presidential transition, oversees investment bank Cantor Fitzgerald with a client roster that includes the digital currency company Tether.

Super PACs supporting Trump's bid also drew donations