US Midterms Put 5 Senate Battlegrounds — Including Ohio and Texas — in Focus for Crypto Industry

With the U.S. midterm elections underway, the cryptocurrency industry is closely watching key Senate races that could shape the direction of digital-asset regulation.

Cointelegraph reported on Nov. 3 that the U.S. crypto industry is focused on Senate contests in Ohio, Nebraska, Texas, Wyoming and Maine. In those states, candidates with differing views on crypto regulation are competing, or large sums of industry money have poured into the races.

Ohio has attracted the most spending. About $63 million in crypto industry money has gone into the race between Republican Senator Jon Husted and Democratic candidate Sherrod Brown. Fairshake, a super PAC backed by Coinbase and Ripple, spent about $56 million, while the Digital Freedom Fund, backed by the Winklevoss twins, put in about $7 million. The two groups backed Husted or campaigned against Brown, who has been critical of crypto regulation.

In Nebraska, Republican Senator Pete Ricketts is facing independent candidate Dan Osborn. Defend American Jobs, a group affiliated with Fairshake, spent about $13.5 million on efforts opposing Osborn. Ricketts has backed the CLARITY Act and the GENIUS Act, a bill regulating stablecoins.

In Texas, Republican candidate Ken Paxton is running against Democratic candidate James Talarico. Both candidates have expressed support for clearer crypto rules, but the Digital Freedom Fund is backing Paxton. Paxton has emphasized strengthening the competitiveness of the U.S. crypto industry. Talarico has called for a regulatory framework that combines consumer protection with innovation.

In Wyoming, Republican candidate Harriet Hageman and Democratic candidate James Byrd are competing for an open seat after Senator Cynthia Lummis, one of Congress's best-known pro-crypto lawmakers, chose not to run. Hageman has supported the CLARITY Act and the GENIUS Act. She also participated in legislation to limit the issuance of a central bank digital currency, or CBDC. Byrd's formal position on crypto policy has not been confirmed.

Maine is also drawing attention. Republican Senator Susan Collins opposed moving the CLARITY Act through Senate procedure in September, citing concerns about its effect on bank deposits. Her Democratic rival, Troy Jackson, has said restrictions on financial-services access for crypto companies should be eased and that individuals' right to self-custody digital assets should be guaranteed.

Across this midterm cycle, the crypto industry has spent about $176 million in more than 100 races. The election outcome could shift the balance of power in congressional debates over crypto regulation. As a result, the results in these key Senate battlegrounds and each candidate's stance on the CLARITY Act are emerging as important variables in the legislative process ahead.