The U.S. cryptocurrency industry has begun placing more weight on election campaigns than on persuading Congress after Senate legislation was blocked.

On Oct. 1 (local time), blockchain outlet Decrypt reported that Stand With Crypto, a political advocacy group created by Coinbase in 2023, released its first list of endorsed Senate candidates.

The focus is the Senate. Stand With Crypto decided to back Republican Jon Husted in Ohio. His opponent, Sherrod Brown, previously led the Senate Banking Committee and has long been seen as a leading critic of the crypto industry. The group pointed to the prospect that, if Brown wins, he could again wield strong influence on committees dealing with rules for the industry as a backdrop to the election push.

In Iowa, the group backed Republican Ashley Hinson, and in New Hampshire it backed Democrat Chris Pappas. In the House, it decided to support Iowa Republican Mariannette Miller-Meeks and Alabama Democrat Shomari Figures, and it also signalled additional advertising in six districts. Stand With Crypto said it makes judgments based on candidates’ crypto policies, not party. The group previously backed 32 sitting House members in August.

The group does not directly donate political funds, but its influence is not small. Stand With Crypto’s executive director said its 3 million supporters are now fully focused on electing pro-crypto candidates. Candidates rated highly by the group also attract funding from crypto-oriented political action committees. Fairshake PAC launched a $30 million campaign targeting Sherrod Brown. Total crypto political spending for the full election cycle is nearing $200 million.

The pivot came shortly after the Clarity Act was voted down in the Senate. The bill failed to pass by 49 to 50, with all Democratic lawmakers voting against it. Concerns surrounding Donald Trump’s personal crypto business were cited as a reason for opposition. Stand With Crypto also added support for 2 Democratic candidates in the midterm elections. That maintained its existing stance of prioritising industry friendliness over party.

Market fund flows were somewhat weak. Spot bitcoin ETFs recorded net outflows of $149 million on the day, and ethereum ETFs saw $60 million pulled out. Solana-related funds also posted net outflows of $12.5 million. Major cryptocurrency prices were broadly flat. Bitcoin traded around $83,900, ethereum rose 1 percent and solana fell 2 percent.

Institutional outlooks were mixed. Citibank raised its year-end bitcoin target to $113,000 and ethereum to $3,028, citing ETF inflows, DAT share buybacks and U.S. Securities and Exchange Commission rule changes. Daily flows, however, continued to show outflows, suggesting policy expectations and investor sentiment have not yet fully aligned.

Against that backdrop, the industry’s attention is again converging on elections. Stand With Crypto’s new message is that the battlefield has shifted from Congress to election campaigns. The results of Senate races, including in Ohio, are emerging as a point of focus because leadership over future U.S. crypto regulatory debates could change depending on the outcome.