Key Policy Update
Congressional Republicans are already on the ropes in this year’s U.S. midterm elections, and Congress is likely to shift in ways that deeply affect crypto efforts. So, advocacy group Stand With Crypto is gearing up with a slate of candidate endorsements and a new political poll that says neither party has a majority advantage as crypto’s best advocate.
Stand With Crypto, established initially by Coinbase as a pro-crypto group populated by retail investors, is known for its political advocacy, including maintaining a grading system for U.S. politicians. It announced endorsements in six “battleground” races on Thursday, backing congressional incumbents — such as Republican Zach Nunn in Iowa and Democrat Don Davis in North Carolina — who have been supportive of the industry.
The organization will deploy efforts to marshal its membership to vote and will also pay for media campaigns. In two other districts, it said it will oppose politicians with records against crypto interests. And more races will be named as the year goes on, the group said.
Regulatory Context
In these consequential elections, Stand With Crypto commissioned a survey that outlined a sense of crypto-owning voters in battleground states. The results, released Thursday, show that neither the Republican nor Democratic party has locked down a majority who think they’re better for the industry, though Republicans are favored 45% to 26%, according to the Impact Research study conducted last month.
The snapshot of potential voters, which had a margin of error of 4.4%, said crypto enthusiasts were highly motivated to cast ballots this year, and 64% of those who hold crypto said they’re enthusiastic about supporting pro-crypto candidates.
These midterms could bring significant consequences for the industry. Even if Congress finishes the Digital Asset Market Clarity Act before the November general elections, a number of other crypto legislative needs remain — including a tailoring of the U.S. tax system for crypto, and the establishment of a U.S. strategic bitcoin reserve that President Donald Trump ordered. But it’s very likely that Democrats will be running at least one of the congressional chambers by then, and crypto may not be as high a priority as it’s been for Republicans.
What To Watch
Wagers at prediction market firm Kalshi have the chances of Democrats taking the House majority at more than 84%. The odds for the more difficult Democratic path in the Senate is considered closer to a coin flip.
The other House lawmakers endorsed by Stand With Crypto include:
- Representative Susie Lee, a Nevada Democrat;
- Representative Mike Lawler, a New York Republican;
- Representative Greg Landsman, an Ohio Democrat;
- Representative Rob Bresnahan, a Pennsylvania Republican.
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