Crypto Industry Spending Millions Ahead of Midterm Elections as CLARITY Act Vote Looms

The crypto industry's political muscle is on full display as it pours millions of dollars into congressional races ahead of the November midterm elections. Stand With Crypto, a Coinbase-backed advocacy group, has endorsed 32 incumbent U.S. House candidates who voted in favor of the CLARITY Act last year.

Every candidate receiving the endorsement supported the bill, which aims to draw clearer lines between digital assets falling under the Securities and Exchange Commission's authority and those under the Commodity Futures Trading Commission's. The legislation has stalled in the Senate, with a vote expected around September 15.

Arthur Hayes, former BitMEX CEO, opposes the CLARITY Act, arguing it mainly benefits venture capital firms and compliance-focused companies rather than genuine innovation in the space. He believes the industry doesn't need this particular bill to thrive and that liquidity conditions and Federal Reserve policy are the real drivers of crypto bull markets.

Hayes also made predictions about Bitcoin's price, suggesting it could reach $126,000 by year-end or briefly drop to $35,000 before rebounding. Bernstein, a Wall Street research firm, has taken a more measured view, saying Circle's growth story doesn't hinge on the CLARITY Act passing.

The crypto industry has already spent nearly $200 million on midterms and plans to commit close to $200 million for the 2026 cycle, reinforcing its growing weight as a political spender in Washington.