Summary

The cryptocurrency industry went all-in on this election, wagering millions on candidates friendly to their anti-regulation stance – and it paid off. In a closely watched race, Ohio’s Senate Banking Committee Chair Sherrod Brown, a fierce advocate for crypto oversight, was ousted by GOP challenger Bernie Moreno, whose campaign was boosted by $40 million from crypto interests. Brown’s loss marks a significant setback for regulatory efforts that have been building momentum under his leadership.

Crypto’s influence didn’t stop in Ohio. The industry backed candidates from both sides of the aisle, supporting Democrats like Michigan’s Elissa Slotkin, who secured an open Senate seat with significant financial support from crypto players. The crypto industry’s bipartisan strategy is strategic: with regulation looming, they’re doing whatever it takes to keep government oversight at bay.

Infamous crypto mogul Sam Bankman-Fried, now awaiting trial, was a high-profile Democratic donor who covertly contributed to the GOP as well, underscoring how crypto’s dollars cross political lines. But the controversy surrounding Bankman-Fried, who’s accused of massive fraud through his failed FTX exchange, has exposed the industry’s darker side. Billions of dollars have evaporated in crypto collapses like FTX, eroding consumer trust and revealing the high risks of a mostly unregulated market.

Critics argue that the crypto industry operates with little transparency, often pitching itself as either a new-age currency or a pseudo-stock market but with no real backing for its assets. Consumers who dive into crypto are taking on significant risk, often with little understanding of what they’re buying. Without meaningful regulations, almost anyone with a server can create and sell a cryptocurrency, sidestepping the rigorous oversight applied to traditional financial institutions.

Despite high hopes for responsible practices, the crypto industry has yet to prove it can self-regulate. Brown’s departure raises concerns that the few advocates for crypto regulation may be dwindling, just as Trump’s administration is expected to roll back regulatory efforts. With Trump’s promise to cut down the “administrative state,” fraud, spam, and cyber scams could rise, leaving consumers with even less protection from white-collar crime.

As crypto’s coffers fuel election campaigns, the industry’s political investments are more than just contributions—they’re calculated moves to keep the wheels of deregulation turning, potentially at the public’s expense. While there may be money to be made, many worry it’s the average consumer who will bear the brunt of a virtually unchecked, high-risk market.