Democrats are narrowing the gap with the cryptocurrency sector amidst disputes within the Trump administration
Introducing the world of crypto, where the political landscape is as volatile as the digital currency itself! In the heart of Washington, the crypto industry is making waves, even as Donald Trump elevates it to new heights.
The Republicans, led by the Senate, are working hard to legitimize cryptocurrencies by adding safeguards, garnering support from some Democrats. However, the bill's pace is swift, reflecting the growing influence of crypto in politics – an industry that's no longer regarded as a passing trend but a force to be reckoned with.
Outspent the critics, the crypto industry flexed its muscle in the 2024 elections. Fairshake, a crypto Super PAC, poured over $130 million into congressional races, swinging the balance in favor of those who backed the industry. Bernie Moreno, supported by Fairshake, dealt a blow to Chief critic, Sen. Sherrod Brown, in Ohio, marking a clear message: being anti-crypto could jeopardize one's career.
Coinbase, the largest US crypto exchange and a major contributor to Fairshake, claims support for the industry transcends party lines. Yet, the company spent ironically on Republican races as well, a strategic move to secure allies on both sides of the aisle.
As the 2026 elections approach, Fairshake already has $116 million in the war chest, signaling unabated investment in political influence. In fact, just hours before a Senate vote on cryptocurrency legislation, an advocacy group linked to Coinbase sent a warning email to US senators, putting them on notice that their stance on crypto would be recorded.
Democrats, however, are grappling with the crypto empire that's unfolding before their eyes. The GENIUS Act, aimed at regulating stablecoins, is a point of contention because it excludes the president from restrictions against profiting off stablecoins. With President Trump vowing to make the US the global crypto hub, concerns over potential conflicts of interest persist.
The Senate plan to pass the revised GENIUS Act this month, amendments notwithstanding. However, divisions within the Democratic caucus remain. Senate Minority Leader Chuck Schumer has urged unity, while Sen. Mark Kelly expects the bill to pass as it resulted from negotiations between Democrats and Republicans.
However, a gaping hole in the bill – the president's exemption from profiting off stablecoins – stirs unease. Sen. Chris Murphy pointed out, "After it's passed, it will be illegal for me to issue a cryptocurrency, but it's legal for the president of the United States."
What's next? If the Senate approves stabilcoin legislation, it must pass the House before reaching the president's desk. Crypto advocates eye market structure legislation as the next priority, hoping for swift bipartisan action. But for now, the political dance around Trump's crypto ambitions continues.
- In Seattle, the crypto industry's influence extends beyond finance and technology, finding a place in the realm of politics and general news.
- Coinbase, a key player in the crypto industry, is not limited in its political support, contributing to both Democrats and Republicans in an attempt to secure allies on all sides.
- The Democratic caucus faces internal division over the proposed GENIUS Act, specifically the president's exemption from restrictions related to profiting off stablecoins, raising concerns about potential conflicts of interest.
- As the Senate works to pass the revised GENIUS Act this month, the next priority for crypto advocates may be market structure legislation, which they hope will garner bipartisan support and continue shaping the business and political landscape of the crypto industry.
