Crypto Companies' Election Spending: What It Means for 2026

In the 2024 election, cryptocurrency companies like Ripple spent millions in political contributions. This surge in spending has raised questions about the industry's influence in Washington. Brad Garlinghouse, CEO of Ripple, revealed that his company alone contributed $25 million to an industry super PAC, aiming to shape the 2026 midterm elections. Crypto companies made up a third of corporate super PAC contributions, backing winners 85% of the time. This success has emboldened the industry, which sees this as a win against regulations. The spending spree was driven by a perceived "war on crypto" led by the Securities and Exchange Commission (SEC). Under Gary Gensler, the SEC sued companies like Ripple, alleging they were selling unregistered securities. Ripple, for instance, spent over $150 million fighting the SEC in court. The industry feels unfairly targeted, arguing that cryptocurrencies should not be subject to the same rules as stocks. Former SEC internet enforcement chief John Reed Stark believes crypto unregulated can lead to issues like fraud and crime. He thinks the new Trump administration will take a softer stance, but he doesn't criticize the SEC's past actions. High-profile cases like Sam Bankman-Fried's fraud at FTX show the potential risks. The impact of crypto money in politics was clear in the Ohio Senate race. Pro-crypto ads helped Republican Bernie Moreno defeat incumbent Senator Sherrod Brown, who was critical of crypto. Garlinghouse sees this as educating voters, believing newer technologies should be embraced. With Trump's win and his pro-crypto Cabinet picks, the crypto industry anticipates more favorable regulations. Garlinghouse hopes for clearer rules, arguing current laws don’t fit cryptocurrencies. Bills like FIT21 aim to redefine digital asset regulations, possibly shifting more power to the Commodity Futures Trading Commission (CFTC).