The cryptocurrency industry's concentrated financial support for Republicans may undermine efforts to pass comprehensive federal crypto legislation, according to former New York Governor Andrew Cuomo.
Speaking at Token2049 on Tuesday alongside OKX CEO Star Xu, Cuomo said the industry pursued a strategy of "investing heavily in the Republican Party" to advance the CLARITY Act, a major crypto regulatory bill.
Spending Gap Favors Republicans
Crypto-focused political action committees have significantly favored Republican candidates in the 2026 election cycle. According to Tech Influence Watch, crypto PACs have spent $54.3 million supporting Republicans compared with $26.2 million supporting Democrats, with an additional $23.2 million spent opposing Democrats.
"When you invest heavily in the Republican Party, by definition, you're going to alienate Democrats," Cuomo said, emphasizing that successful legislation requires bipartisan support.
Democratic Support Remains Possible
Cuomo disputed the notion that Democrats oppose cryptocurrency technology. "There's a sense that Democrats are anti-crypto," he said, "but I could argue that the crypto technology is exactly suited to the Democratic Party. It's empowering people who otherwise wouldn't have access to financial products."
Recent votes show meaningful Democratic support for crypto regulation. In July 2025, 78 House Democrats joined 216 Republicans in passing the CLARITY Act, though 134 Democrats opposed it. In the Senate, 18 Democratic senators supported the GENIUS Act, which passed in June 2025.
Path Forward Requires Balance
A Kalshi prediction market assessed the probability of Democrats controlling both chambers of Congress at approximately 61% as of Thursday. Cuomo noted that a Democratic-controlled Congress could either roll back existing regulatory measures or collaborate with the Trump administration to pass comprehensive crypto legislation.
"You need Democrats to pass the bill. You need Republicans. You have to be more balanced," Cuomo said.
The Fairshake crypto PAC announced plans Monday to support 32 House candidates in midterm elections, including 19 Republicans and 13 Democrats, signaling some shift toward broader political engagement.
