Party primaries begin in three US states…could they become a turning point for the direction of crypto legislation?

As party primaries get underway in North Carolina, Texas and Arkansas ahead of the 2026 midterm elections, attention is focused on how the balance of power in Congress—and the direction of crypto legislation—may shift.

According to a March 3 (local time) report by Cointelegraph, the primaries are the first hurdle on the road to the 2026 midterms, in which all 435 House seats and 33 Senate seats will be contested. Depending on changes in the makeup of Congress, the pace and direction of action on stablecoin and digital-asset market-structure bills could also change.

In Texas, Democratic Rep. Jasmine Crockett is challenging Republican Sen. John Cornyn on his turf. Crockett backed last year’s GENIUS Act, a stablecoin payments bill, but voted against FIT21, an earlier version of the Clarity Act.

Crockett also drew controversy in the 2022 House race after Protect Our Future—a political action committee (PAC) backed by former FTX CEO Sam Bankman-Fried—spent $1 million to support her. Another crypto-related PAC, Web3 Forward, is also reported to have spent $1 million.

According to campaign-spending tracker AdImpact, as of Feb. 27, combined spending tied to the Texas Senate primary had surpassed $122 million. This has raised the prospect that the crypto industry could exert direct or indirect influence on the election.

Fairshake, a crypto-backed super PAC, poured more than $133 million into key battlegrounds including the 2024 Ohio Senate race. The industry said the results helped produce “the most pro-crypto Congress ever.”

Fairshake held $193 million as of January, with some funds reportedly already deployed in Alabama and Texas races. Its affiliate Protect Progress said it had set aside $1.5 million to block the re-election of Texas Rep. Al Green.

President Donald Trump also received support from the crypto industry during the 2024 presidential election. Since taking office, he has pursued pro-crypto policies, including appointing Paul Atkins as chair of the Securities and Exchange Commission (SEC) and signing the GENIUS Act. However, controversy over potential conflicts of interest tied to his family’s involvement in crypto businesses persists.

The outcome of these primaries is seen as a key variable for the crypto industry, as it could influence the future direction of stablecoin regulation and the handling of digital-asset market-structure legislation.