Crypto Industry Braces for Midterm Battles After CLARITY Act Fails

Last week's US Senate vote against advancing the Digital Asset Market Clarity (CLARITY) Act has sent shockwaves through the cryptocurrency industry, potentially sparking a surge in spending by crypto-aligned political action committees (PACs).

The bill, which aimed to provide regulatory clarity for digital assets, was rejected 49-50 on September 15. While some advocates haven't ruled out the possibility of another vote before the next session of Congress, at least one PAC isn't taking any chances.

Fairshake, backed by Coinbase and Ripple Labs, plans to pour $30 million into opposing Sherrod Brown in Ohio's Senate race. Brown, who chaired the Senate Banking Committee when Democrats were in the majority, has been a vocal critic of crypto policies.

Coinbase's Stand With Crypto initiative warned that lawmakers who failed to advance the CLARITY Act could face 'consequences' in the 2026 midterms based on their votes. The organization responsible for rating politicians based on their positions on crypto could have a significant impact on the elections and on how PACs aligned with the industry use funds to target certain candidates.