Crypto PACs Spend Millions Backing Special Election Winners

• Walkinshaw wins Virginia primary; Protect Progress contributed $1M in crypto PAC support.
• Crypto firms renew Fed master account push as political interest in sector grows.
• Crypto PACs prepare for 2026 elections with over $100M in reserves for candidates.

Crypto-focused super PACs have dramatically increased their involvement in U.S. political campaigns, especially in special elections throughout 2024. Fairshake, the most prominent super PAC in the digital asset sector, has spent more than $136 million backing over 58 pro-crypto congressional candidates in the past year. 

The group, along with affiliates Defend American Jobs and Protect Progress, has quickly redirected its resources to key special elections. These organizations aim to shape the regulatory environment for blockchain technology and digital assets.

In Virginia’s 11th Congressional District, Protect Progress recently invested $1 million in support of James Walkinshaw, who emerged victorious in the Democratic primary. Walkinshaw previously served as chief of staff to the late Rep. Gerry Connolly. He has voiced strong support for blockchain as part of his economic development vision for Northern Virginia. In contrast, Connolly, who passed away last month, was known for his opposition to crypto initiatives. He received an “F” rating on the Stand With Crypto scorecard due to votes against major legislation like the FIT21 market structure bill.

Walkinshaw’s victory, despite some criticism from his main challenger, State Senator Stella Pekarsky, for accepting support from the crypto industry, shows ongoing momentum for pro-crypto candidates. Earlier, Fairshake invested $1.5 million in Florida campaigns for Jimmy Patronis and Randy Fine, aiding crypto-friendly politicians.

With more than $100 million in reserves, Fairshake and its allies are preparing for the 2026 midterm elections. Major donors include Coinbase, Andreessen Horowitz, and Ripple. Their strategy emphasizes supporting candidates from both parties who favor responsible innovation in the crypto sector.

Crypto Firms Renew Drive for Fed Master Accounts

As political interest in the sector grows, several crypto-related companies are once more aiming to gain access to the Federal Reserve’s payment systems. Obtaining a Fed master account would enable these companies to conduct transactions directly with the central bank, thereby increasing efficiency and reducing expenses. Recently, firms such as WisdomTree Digital Trust, Standard Custody & Trust Company, and Commercium Financial have been listed in the Fed’s master account application.

Both WisdomTree and Standard Custody are classified as trust companies under the regulation of the New York Department of Financial Services. Nonetheless, obtaining a Fed master account typically requires deposit-taking authority or FDIC insurance, which these companies may not currently hold.  

While current regulations remain a hurdle, some analysts believe that a future executive order from President Trump could direct the Fed to open access to fintech and digital asset firms, signaling a potential shift in policy.

Commercium Financial, a Wyoming Special Purpose Depository Institution, withdrew its earlier application in 2022 but has now reapplied. Likewise, other crypto companies such as Fidelity Digital Assets have also applied to the Office of the Comptroller of the Currency (OCC) to obtain a national bank charter. If approved, these charters would allow nationwide operations without the need for multiple state money transmitter licenses.

Related: South Korea Halts CBDC Trials as Banks Embrace Stablecoin Shift

Congressional Focus Turns to Crypto Legislation

While Congress works to pass President Trump’s “One Big Beautiful Bill” before the July 4th deadline, crypto legislation remains in focus. Two key bills, namely the GENIUS Act and the CLARITY Act, will be promoted by House leaders. They both seek to ensure that safer regulatory structures are established for the digital asset sector. Procedural votes will be planned during the second week of July. If approved, the GENIUS Act would go directly to the president, while the CLARITY Act would proceed to the Senate.

The Senate is developing a separate bill to address the structure of the cryptocurrency market. These parallel legislative efforts demonstrate the pressure on policymakers, given the increasing influence of digital assets on the American economy and the role of crypto in political finance.