cryptocurrency gains political influence in American politics
The cryptocurrency industry has significantly influenced American politics in recent years, with landmark legislation like the GENIUS Act and CLARITY Act marking a major shift in U.S. policy towards digital currencies.
The GENIUS Act, signed into law by President Trump, establishes the first federal regulatory framework for stablecoins, a subset of cryptocurrencies pegged to traditional assets. This law signals a strategic move by the Trump administration and Republican lawmakers to position the U.S. as a global leader in cryptocurrency technology and digital finance.
The CLARITY Act, currently pending in the Senate, proposes transferring regulatory authority over crypto-assets from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). This shift is designed to clarify jurisdiction and create more tailored rules for crypto exchanges, brokers, and dealers.
Together, these bills are part of a broader regulatory agenda reflected in the Trump administration's comprehensive report that includes over 100 policy and legislative recommendations to solidify U.S. leadership in digital assets, blockchain innovation, financial infrastructure modernization, and combating illicit finance.
Politically, these legislative moves have catalyzed a debate between Republicans, who champion the bills as steps toward American dominance in crypto finance, and Democrats and consumer advocates, who warn about financial risks, regulatory gaps, and the potential for inadequate protections reminiscent of past financial crises.
The GENIUS Act has been instrumental in fostering growth within the stablecoin market. Treasury Secretary Scott Bessent projects that the regulatory framework established by the GENIUS Act could help stablecoins grow into a $3.7 trillion market by the end of the decade.
Meanwhile, the number of Americans owning cryptocurrencies has nearly doubled in the past three years, with approximately one in four adults now holding digital currencies. This surge in ownership is partly due to the industry's transformation from Washington outsider to insider, reflected in the industry's spending on political campaigns and lobbying efforts.
Notable figures within the industry have also made their mark on the political landscape. President Trump, initially a crypto skeptic, has evolved into a "crypto president" and has significant stakes in the crypto economy through World Liberty Financial. The industry's flagship super PAC, Fairshake, outspent traditional powerhouses and demonstrated crypto's willingness to make or break political careers, as seen in the case of Senator Sherrod Brown of Ohio, a longtime crypto critic who was a notable scalp for the industry due to the millions spent targeting him.
The rise of non-custodial crypto wallets, which allow people to control their own digital money without banks as middlemen, further underscores the industry's influence on American finance.
In the corporate sector, giants like JPMorgan Chase, Amazon, and Walmart are reportedly working on their own stablecoins, signaling a broader trend of mainstream adoption of cryptocurrencies.
The Bitwise Crypto Industry Innovators ETF (BITQ) has also become Wall Street's favorite way to bet on crypto without actually buying Bitcoin, further integrating the industry into the traditional financial market.
The cryptocurrency industry has built a Washington operation that rivals oil and pharma in terms of lobbyists, think tanks, and grassroots networks. This political clout has been instrumental in driving the passage of the GENIUS Act and CLARITY Act, and will likely continue to shape the future of American finance and technology.
[1] CoinDesk. (2025). The GENIUS Act explained: What's in the US crypto bill? [online] Available at: https://www.coindesk.com/policy/2025/07/23/the-genius-act-explained-whats-in-the-us-crypto-bill/
[2] The Block. (2025). What is the CLARITY Act, and why is it important for the crypto industry? [online] Available at: https://www.theblockcrypto.com/post/119546/what-is-the-clarity-act-and-why-is-it-important-for-the-crypto-industry
[3] Fortune. (2025). The crypto industry is spending millions to influence Washington. Here's what you need to know. [online] Available at: https://fortune.com/2025/01/15/crypto-industry-washington-lobbying-spending/
[4] Politico. (2025). Trump administration unveils comprehensive crypto policy plan. [online] Available at: https://www.politico.com/news/2025/02/01/trump-administration-crypto-policy-plan-443360
[5] The New York Times. (2025). The crypto industry's lobbying blitz in Washington. [online] Available at: https://www.nytimes.com/2025/03/20/business/crypto-industry-lobbying-washington.html
- The GENIUS Act and CLARITY Act, two significant pieces of legislation shaped by American politics, are emblematic of how the cryptocurrency industry's technological advancements have influenced the regulatory agenda, with these bills aiming to solidify US leadership in digital assets and digital finance.
- The cryptocurrency industry, demonstrated by its substantial lobbying efforts and spending on political campaigns, has transcended the status of a Washington outsider, positioning itself as a significant player in American politics, much like oil and pharma industries.
