The 2024 election cycle started a pivotal shift in U.S. politics, especially as pro-crypto candidates gained a lot of traction thanks to financial backing from cryptocurrency-related PACs, including Coinbase's Stand With Crypto Alliance and Fairshake. These contributions helped create a Republican-led Senate and a Congress that is ready to implement crypto-friendly reforms. The upcoming resignations of SEC Chair Gary Gensler and Commissioner Jaime Lizárraga also suggests that a big shift in the way crypto regulation is approached is just around the corner.
America’s Congress Benefits from $245 Million in PAC Support
Bernie Moreno, who was once known as a car dealership owner from Cleveland, Ohio, became a well known political figure after his victory over Democratic incumbent Sherrod Brown in the 2024 Senate race. Despite his lack of any prior political experience and a failed Senate bid in 2022, Moreno's alignment with the crypto industry propelled him to the forefront of a broader movement to reshape Congress with pro-crypto legislators. His campaign received very impressive financial backing, and the crypto sector alone contributed about $40 million to his efforts.
This financial support was part of a much larger trend, as cryptocurrency-related Political Action Committees (PACs) and affiliated groups spent more than $245 million during the 2024 election cycle. This accounted for almost half of all corporate contributions, according to Public Citizen.
One of the key players in this initiative was the Stand With Crypto Alliance, which is an advocacy group that was launched by Coinbase. The group implemented a strategic grading system to allocate funding to candidates supportive of blockchain innovation, and helped nearly 300 pro-crypto lawmakers secure election victories.
The crypto industry’s strategy deviated from more traditional lobbying methods, and focused instead on shaping the electoral landscape by identifying allies and adversaries in the political arena. This approach proved very effective, as pro-crypto candidates like Moreno benefited from endorsements and insights from influential people like Silicon Valley leaders Marc Andreessen and Ben Horowitz, as well as Coinbase co-founders Brian Armstrong and Fred Ehrsam. Coinbase itself played a pivotal role by directing more than $75 million through its super PAC, Fairshake, which exclusively supported pro-crypto candidates.
Fairshake’s influence extended across party lines, and backed candidates in critical Senate races in Arizona, Michigan, and West Virginia. By the end of the election cycle, Fairshake already raised $78 million in preparation for the 2026 midterms. Key contributors to this financial powerhouse included Ripple co-founder Chris Larsen, who donated $12 million, along with Cameron and Tyler Winklevoss, who collectively gave $10.1 million.
Moreno’s campaign also gained credibility through his blockchain startup, Champ Titles. The startup focuses on digitizing vehicle titling and registration. This improved his image as a forward-thinking candidate, and also aligned with the crypto industry’s vision for the future.
The election cycle’s outcome delivered a Republican-led Senate and a Congress that is poised to support crypto-friendly policies. This shift became very clear after it was announced that SEC Chair Gary Gensler will retire on inauguration day.
U.S. Crypto Policies Could Still Drive Innovators Away
Coin Center, a non-profit crypto advocacy group, warned that while a Trump presidency could be beneficial for the crypto industry, deeply entrenched policies might still deter innovators from operating in the United States. In a blog post that was published on Nov. 21, Coin Center’s research director, Van Valkenburgh, identified three big threats facing crypto users and developers in the U.S. as 2025 approaches. These threats were broadly categorized as "surveillance issues," and includes tax reporting requirements, Anti-Money Laundering (AML) policies, and criminal proceedings against non-custodial crypto services.
The first concern stems from the crypto reporting mandates under Section 6050I of the U.S. tax code, which require people receiving $10,000 or more in crypto to report these transactions to the IRS without a warrant. Coin Center argued that these requirements violate constitutional protections, and were outlined in their objections last August.
The second and third threats relate to sanctions that were imposed on Tornado Cash and the resulting criminal charges for unlicensed money transmission against its founder, Roman Storm, and the Bitcoin wallet service Samourai Wallet. Coin Center warned that these charges could establish some troubling precedents for developers of non-custodial crypto services.
While the Trump administration is expected to adopt a much more crypto-friendly stance, Valkenburgh pointed out that overzealous sanctions and AML policies might still persist. He specifically mentioned that the Department of Justice values its political independence, and might not withdraw ongoing prosecutions despite a change in administration.
Valkenburgh believes there is a serious need for progress in addressing these challenges, and also warned that continued enforcement of rigid surveillance measures could drive crypto innovators away from the U.S. This will deny Americans the benefits of blockchain technologies. He also argued that these policies actually do very little to deter criminal activity, and he called for a reevaluation of the balance between regulation and innovation.
SEC Commissioner Jaime Lizárraga Also Resigns
A second high-ranking official from the United States Securities and Exchange Commission (SEC) announced plans to step down. Many believe that this is the start of the highly anticipated shift in the agency's leadership.
SEC Commissioner Jaime Lizárraga revealed on Nov. 22 that he will resign on Jan. 17, less than three years after his appointment. Lizárraga’s decision to step down was motivated by personal reasons, particularly to spend more time with his wife, who is battling cancer.
Lizárraga’s career with the SEC started in the 1990s as a deputy director of legislative affairs. He later served as a senior adviser to House Speaker Nancy Pelosi for over a decade, and contributed to major financial legislation, including the Dodd-Frank Act. As a commissioner, Lizárraga focused on regulation related to climate risk, cybersecurity, and data breach disclosures.
SEC Commissioner Jaime Lizárraga
His resignation was announced after the announcement of SEC Chair Gary Gensler’s upcoming departure. With both officials leaving, the SEC will see a diminished Democratic presence as President-elect Donald Trump takes office in January.
Under Gensler’s leadership, the SEC adopted a very strict stance on the crypto industry that placed a lot of emphasis on enforcement actions. However, Trump vowed to take a different approach, and also appealed to crypto voters by promising to dismiss Gensler and potentially ushering in a more industry-friendly regulatory environment.
This anticipated shift already sparked action in financial markets. On the same day Gensler announced his departure, the Chicago Board Options Exchange’s BZX Exchange filed applications to list spot Solana exchange-traded funds (ETFs) from asset managers including Bitwise, VanEck, 21Shares, and Canary Capital.
These leadership changes at the SEC, combined with a new administration in the White House, suggest a potential pivot in the agency’s stance on digital assets and financial innovation. The cryptocurrency community has been asking for regulatory clarity and less aggressive enforcement for a while now, and the Trump administration could finally provide this for the industry.
