As we approach the 2026 midterm elections across the country campaigning is fast and furious with tons of money being poured into pivotal races such as for Senate seats in Texas, Georgia, Ohio, and even Florida. The stakes for the crypto industry are substantial in this election. Issues that will be affected will include the Genius Act, a possible Bitcoin strategic reserve, whether or not issuers of Stablecoins will be able to offer interest bearing accounts, and the broader degree and shape of crypto regulation. While the larger population will be focusing on the cost of living, the war with Iran, the high national debt, health care and more, folks in the crypto world will be laser focused on key supporters of crypto in specific races.
Which Candidates Are Getting Support from Crypto?
Stand With Crypto is an advocacy group that is supporting no fewer than thirty-two candidates for the US House of Representatives. The supported candidates include both Republicans and Democrats with the deciding factor being support of key cryptocurrency issues. Key contenders include Bill Huizenga, and Tom Emmer running Michigan and Minnesota respectively as well as Democrats Richie Torres and Josh Gottheimer running in New York and New Jersey respectively. The focus of this advocacy group is getting out the vote more so than simply funneling money into specific campaigns.
Midterms and the Genius Act
The Genius Act was passed into law in 2025. However, this law which provides Federal regulation of stable coins could be subject to regulations regarding its implementation and the strictness and “flavor” of those regulations will be subject to any future legislation by a newly elected House of Representative and Senate. A major issue will be tech companies engaging in banking using stable coins without the same guardrails that traditional banks have to comply with in order to have protection of deposits by the Federal Deposit Insurance Corporation. Those in the crypto business as well as their customers both will have an interest in who gets elected and how regulations for the Genius Act are finalized.
US Capital Building Where Crypto’s Future Will Be Shaped
Bitcoin Strategic Reserve and the 2026 Midterm Elections
The are two important aspects of a potential Bitcoin strategic reserve. Like US gold reserves Bitcoin reserves would provide support for the value of the US dollar and security for the US economy. And having a substantial government owned and protected reserve of Bitcoin and other digital assets will be a huge boon for the crypto sector as a whole. In addition the presence of a huge reserve of Bitcoin and how it is managed would have great implications for crypto going forward. Like with other crypto issues, the number of representatives and senators elected who are well versed in crypto and who recognize its potential will determine if a Bitcoin/crypto reserve comes into existence.
Interest Paid on Stable Coin Deposits and the 2026 Midterm Elections
Stable coin issuers are currently offering better rates of interest on stable coin accounts that traditional banks are offering on dollar deposits. They are exploiting a loophole in the Genius Act to do this. US banks are especially concerned because if money flows out of banks there will be less available to lend for home mortgages and other purchases essential to the US economy. The US Federal Reserve has warned of a potential loss of more than a Trillion dollars in lending capacity. How this issue will handled going forward will depend heavily on the composition of the next US House of Representatives and US Senate.
The 2026 Midterms and the Flavor of Crypto Regulation
There are still folks, including important legislators, who see cryptocurrencies as risky investments that are dangerous for the financial system and society at large. Some of this comes from pure ignorance. Some of it comes from real life examples like actions in the crypto world running up to the system’s collapse into crypto winter. What is needed going forward is not a lot of polarization with all or nothing views but rather informed, clear thinking that will allow crypto to go forward while protecting businesses and customers from excess. We can hope that those elected in the November midterm elections fit into the informed and clear thinking mode.
