The recent failure in the US Senate to advance a digital asset market structure bill could increase cryptocurrency industry spending to influence key congressional races in the 2026 US midterm elections.
On Sept. 15, senators voted 49 in favor and 50 against advancing the Digital Asset Market Clarity (CLARITY) Act. The outcome significantly reduces the likelihood that Congress will pass the legislation given the limited days remaining in session before 2027, though some advocates have not ruled out a potential re-vote.
Following the vote, crypto-backed political action committees are preparing their strategies for upcoming elections. Fairshake, a PAC backed by Coinbase and Ripple Labs, plans to invest $30 million to oppose Sherrod Brown in Ohio's Senate race. Brown previously chaired the Senate Banking Committee during the Democratic majority and advanced policies opposed by the digital asset industry.
Steve Gannon, a partner at the law firm Davis Wright Tremaine, stated that the CLARITY vote gave the industry a clear picture of reliable supporters and opponents, noting that it will be difficult for those who voted against the measure to seek financial support from the sector in the midterms.
Stand With Crypto, an initiative launched by Coinbase in 2023, warned that lawmakers who failed to advance the bill could face electoral consequences. Mason Lynaugh, the organization's executive director, stated that the vote clarifies which officials support the community and which oppose it, ensuring advocates will vote accordingly.
As of Monday, major crypto-aligned PACs—including Fairshake, Defend American Jobs, Protect Progress, Fellowship, and the Digital Freedom Fund—had not disclosed any new expenditures to the Federal Election Commission following the CLARITY vote.
