The election night in the United States delivered a crushing victory for the Democrats—and a huge defeat for the cryptocurrency industry. The sector’s political action committees (PACs), which amassed hundreds of millions of dollars to back crypto-friendly candidates nationwide, saw several high-profile bets fail, tearing down what had seemed like a reliable formula for turning money into political power.
The “Crypto PACs,” including Fairshake, Defend American Jobs, and Protect Progress, spent more than $170 million of their war chest of roughly $260 million in the midterm elections, according to Tech Influence Watch, an independent public-interest tracker created by software engineer and technology writer Molly White.
Read more: “Midterms”: who are the megadonors of the most expensive electoral cycle in history?
Between Fairshake and its two affiliates, spending to support Republicans totaled about $75 million, compared with about $30 million to back Democrats. The network also spent roughly $36 million to oppose Democratic candidates, including in party primaries.
The bulk of the PAC money went to competitive races where their preferred candidates faced tough battles—and, in the end, lost.
In Ohio, the “Crypto PACs” spent more than $40 million to back Republican Senator Jon Husted and another $24 million to oppose his Democratic challenger and longtime cryptocurrency critic, Sherrod Brown. Brown’s victory marked a bitter reversal for the PACs, which in 2024 spent heavily to help Republican Bernie Moreno defeat him.
In Wisconsin, crypto groups spent almost $2 million to back Republican Bryan Steil, chair of the House Financial Services Committee’s Subcommittee on Digital Assets, and to oppose Democrat Mitchell Berman; Berman defeated him anyway.
In Texas, the industry spent $1.4 million to back Republican Senate candidate Ken Paxton and oppose Democrat James Talarico, who won the race.
In Michigan, Democrat Abdul El-Sayed defeated Republican Mike Rogers despite roughly $810,000 in crypto-backed support for Rogers.
And in Iowa, Democrat Josh Turek defeated Republican Ashley Hinson despite $700,000 in backing from the Digital Freedom Fund, the Winklevoss twins’ pro-crypto group.
Illinois also offered a reminder of a prior failed bet. Democrat Juliana Stratton won her Senate seat on Tuesday after surviving roughly $10 million in crypto PAC spending aimed at defeating her in the March primaries.
The midterm results on Tuesday dampened the Crypto PACs’ track record in 2024, when their spending helped elect allies in Congress from both parties and topple prominent industry critics.
The sector had already been dealing with a setback in Washington after the Senate blocked the Clarity Act in September, leaving its bid to craft a regulatory framework for digital assets unfinished.
Some Victories
But not all of the Crypto PACs’ spending went to waste. In Nebraska, the Fairshake network spent more than $13 million to oppose independent Dan Osborn, helping Republican Senator Pete Ricketts face an unexpectedly strong challenge, preserving an industry ally on the Senate Banking Committee.
In Kentucky, Republican Andy Barr won the Senate seat long held by retiring Mitch McConnell after Crypto PACs spent nearly $8 million backing him in the Republican primaries, sending another industry ally to Congress.
This story was originally published on Fortune.com
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