Crypto industry scores major wins in Congress with help from super PAC-backed lawmakers

Lawmakers push stablecoin bill, benefiting crypto industry and Trump interests.

A surge of political spending by the cryptocurrency industry is paying off in Washington, with lawmakers in both chambers of Congress pushing legislation that would legitimize and expand stablecoins — digital currencies pegged to the US dollar — and ease oversight from financial regulators, the New York Times reported.

One of the most significant wins came last month when Senator Ruben Gallego, a Democrat from Arizona and beneficiary of $10 million in crypto-backed campaign ads, broke with his party’s leadership to support the GENIUS Act. The bill would pave the way for businesses to issue stablecoins and loosen regulatory requirements, a top priority for the crypto industry.

“It’s clear that digital assets are here to stay,” said Gallego, who described the bill as a “step in the right direction” following a Senate Banking Committee vote to advance it.

Political influence meets policy momentum

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. Funded largely by Coinbase, Ripple, and venture capital firm Andreessen Horowitz, the PACs helped elect pro-crypto candidates across both parties.

These investments are already reshaping U.S. policy. The GENIUS Act advanced with bipartisan support and is expected to reach the Senate floor in the coming weeks. In the House, a similar bill — the STABLE Act — also 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.

Trump, the SEC, and crypto’s changing fortunes

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 US 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.

Lobbying blitz follows electoral success

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.

A powerful new force in US finance

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.