How Crypto’s Political Makeover Changed Washington’s Power Dynamic
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In September 2023, Coinbase CEO Brian Armstrong made a bold declaration at the Mainnet conference in New York: the cryptocurrency industry needed to start playing by Washington’s rules. His proposal? A dramatic increase in political donations to match the influence of Wall Street and Big Oil.
What followed was one of the most rapid transformations of political influence in recent American history.
The Catalyst for Change
The cryptocurrency industry entered 2023 battered and bruised. The previous year had seen:
- Over $2 trillion in investor losses
- The collapse of major platforms like FTX
- Aggressive regulatory crackdowns by the SEC
- A crisis of confidence in digital assets
Armstrong’s strategy was deceptively simple: if money drives Washington, then the crypto industry needed to become a major political donor. He called for annual political contributions of at least $50 million through a dedicated Political Action Committee (PAC) named “Fairshake.”
Exceeding Expectations
The industry’s response surpassed all projections. Within months, crypto companies had contributed over $200 million to Fairshake and affiliated groups, making it the largest single-issue PAC in American history. This dwarfed traditional corporate heavyweights like Koch Industries and Chevron.
Strategic Deployment
Fairshake’s approach was methodically bipartisan:
1. Supporting pro-crypto candidates from both parties
2. Targeting anti-crypto incumbents regardless of party affiliation
3. Successfully backing 48 candidates with $135 million in spending
The results were immediate. Crypto-skeptic representatives like Katie Porter and Jamaal Bowman lost their seats. In Ohio, pro-crypto Republican Bernie Moreno gained ground against Democratic Senator Sherrod Brown, a longtime industry critic.
The Trump Factor
The industry’s influence extended to the presidential race, with crypto billionaires like the Winklevoss twins and Kraken founder Jesse Powell contributing at least $25 million to support Donald Trump. The former president, once a crypto skeptic, became an ardent supporter, even promising to replace SEC Chairman Gary Gensler with a more industry-friendly regulator.
Market Impact
The political transformation had dramatic market effects:
- Bitcoin reached $88,000, with predictions of exceeding $100,000
- Coinbase stock surged 44% in five days following Trump’s success
- Armstrong’s personal wealth grew by $2 billion, reaching $14 billion
Looking Ahead
The crypto industry’s political metamorphosis offers a masterclass in Washington influence. By adopting traditional lobbying techniques and applying them at unprecedented scale, the sector transformed from regulatory target to political powerhouse in mere months.
As the industry prepares for the 2026 midterms with fresh fundraising efforts, one thing is clear: cryptocurrency has permanently altered Washington’s power dynamics. The question now isn’t whether crypto will have a seat at the political table, but how much influence it will ultimately wield.
For other industries watching this transformation, particularly those facing regulatory challenges, the crypto sector’s playbook offers a compelling template for political influence in modern Washington. Armstrong’s strategy didn’t just change crypto’s political fortunes — it rewrote the rules of industry advocacy in the digital age.
