The crypto industry’s years-long campaign to build influence in Washington is facing a key test as the CLARITY Act moves closer to a possible Senate floor vote before the August recess. Recent shifts among law enforcement groups have strengthened the bill’s momentum, even as critics continue to warn that parts of the legislation could leave room for abuse.
Law enforcement backing shifts
On July 3, the Major County Sheriffs of America said it was moving from opposition to a neutral stance on the CLARITY Act after discussions over Section 604, also known as the Blockchain Regulatory Certainty Act. The association represents elected sheriffs from some of the largest counties in the United States. Earlier the same day, the National Organization of Black Law Enforcement Executives became the first major law enforcement body to endorse the bill.
Those developments marked a notable change in the coalition around the legislation. But the debate has not been settled. In late June, four attorneys and law enforcement groups representing 70,000 members warned the acting US attorney general that the bill’s “broad exemptions could create gaps in oversight and accountability that sophisticated criminal actors may exploit.” Their concerns centered on the BRCA language, which includes protections for developers of decentralized smart contracts.
A long-built political machine
The latest legislative push comes against the backdrop of an increasingly organized crypto advocacy effort. Kristin Smith, president of the Solana Policy Institute and former chief executive of the Blockchain Association, wrote on June 25 that the sector’s advocacy operation is now “the strongest and most sophisticated it has ever been.” She pointed to bipartisan negotiations, daily meetings with lawmakers and a wider political network supporting candidates aligned with the industry.
According to Public Citizen, that broader political operation has spent $189 million so far to influence the 2026 midterm elections. Industry supporters describe that spending as a response to political hostility toward crypto since 2022. Opponents argue it is an attempt to buy influence in Washington.
Colin McLaren, head of government relations at the Solana Policy Institute, said organizations including Fairshake, Cedar Innovation Foundation, Stand With Crypto and the Blockchain Association built the infrastructure now helping to advance pro-crypto legislation.
How Fairshake is shaping the field
Fairshake, the crypto-backed political action committee supported by companies such as Coinbase, Ripple and Andreessen Horowitz, has become the most visible part of that effort. During the 2026 congressional primary cycle, Fairshake and affiliated PACs spent tens of millions of dollars backing candidates viewed as favorable to digital assets and opposing others seen as hostile to the sector.
In May alone, affiliated PACs spent more than $20 million in Republican congressional primaries in Georgia, Alabama and Kentucky, including more than $7 million in support of Rep. Andy Barr in Kentucky’s Senate primary. The group later expanded into Democratic races in Maryland and New York, spending millions more as several crypto-backed candidates advanced.
Supporters say those interventions matter in competitive races. Fairshake spokesperson Geoff Vetter said the group’s goal is to build “the largest crypto-literate caucus in history,” measuring success not only by wins but by how many lawmakers become willing to engage with digital asset policy.
Influence, but not unlimited control
Even so, the effect of crypto campaign money may be more complicated than headline spending totals suggest. In a June 30 analysis for Brogan Law, journalist Veronica Irwin reviewed 40 decided races involving Fairshake and found that while its preferred candidates won 38 of them, many contests already appeared to lean toward those winners before the PAC entered. Using her methodology, only 16 races seemed competitive enough for Fairshake’s spending to have plausibly changed the result.
That does not mean the group lacks influence. Rather, the analysis suggests its strategy may rely as much on breadth, deterrence and political signaling as on directly swinging elections. The CLARITY Act’s current position reflects that wider mix of campaign activity, lobbying and negotiations with lawmakers and outside groups, including law enforcement organizations concerned about financial crime and consumer protection.
The coming Senate debate will therefore test not just one bill, but the effectiveness of the crypto industry’s broader Washington strategy: years of lobbying, a rapidly expanding election apparatus and an effort to translate political support into durable market structure legislation.
Source: cointelegraph.com