After helping elect 50+ lawmakers, crypto-linked super PACs are reshaping U.S. policy

Gallego is one of more than 50 lawmakers supported by crypto-linked super PACs like Fairshake, which spent over $130 million in the 2024 election cycle.

A massive investment by cryptocurrency firms in a new super PAC, Fairshake, is having a significant impact on the 2024 election cycle and could ultimately decide the fate of a bill to set federal rules for stablecoins, a type of digital currency pegged to the U.S. dollar.

The PAC, which is largely funded by Coinbase, Ripple, and venture capital firm Andreessen Horowitz, spent over $130 million and helped elect pro-crypto candidates across both parties. These investments are already reshaping U.S. policy.

The GENIUS Act, which would create a legal framework for stablecoins, is expected to reach the Senate floor in the coming weeks with bipartisan support. In the House, a similar bill — the STABLE Act — cleared committee earlier this month, despite objections from Democrats who argue the legislation could enrich President Trump's crypto-linked firm, World Liberty Financial.

"This is a total sea change in terms of how Congress is approaching this industry," said Josh Vlasto, spokesperson for Fairshake. Critics, however, say the pace and scope of the crypto industry's influence are alarming.

The legislative push coincides with a dramatic shift in federal enforcement. The Securities and Exchange Commission has dropped lawsuits against major crypto exchanges like Coinbase and Kraken, and President Trump recently issued an executive order calling for a national crypto reserve. At a March crypto conference, Trump praised stablecoins as tools to "expand the dominance of the U.S. dollar."

Just days later, World Liberty Financial — a crypto company linked to Trump's family — announced its own stablecoin, USD1, which would benefit from the GENIUS Act's provisions.

The act's sponsors, including Senator Kirsten Gillibrand and Senator Tim Scott, say the legislation would set much-needed guardrails around the growing stablecoin market. But watchdog groups warn it lacks sufficient consumer protections and could enable money laundering or financial instability.

"This is a crypto industry wish list, not an adequate regulatory regime," wrote a coalition of consumer advocates in a February letter.

After helping elect 53 out of 58 targeted candidates, crypto firms have doubled down on lobbying, sending executives to Washington and hosting photo ops with lawmakers. Gallego, Ohio's Bernie Moreno, and Indiana's Jim Banks — all backed by crypto PACs — now sit on the Senate Banking Committee, positioning them to influence key votes.

House Financial Services Chair French Hill, a longtime supporter of the industry and recipient of $100,000 in Fairshake spending, helped shepherd the STABLE Act through committee.

Still, some Democrats see the legislation as a direct line between public policy and private profit. "The president of the United States should not be using the power of the office to create business that will enrich himself," said Representative Maxine Waters of California, the top Democrat on the House Financial Services Committee.

If passed, the GENIUS and STABLE Acts could represent the most sweeping federal endorsement of cryptocurrency to date — transforming an industry long associated with fraud and volatility into a pillar of financial regulation. With crypto allies now deeply embedded in Congress and the executive branch, the question is no longer whether digital currency will be regulated — but who will shape those rules, and to whose benefit.