Crypto giant spends $21 million to support Trump, launching the midterm election "policy defense battle"

The latest documents from the U.S. Federal Election Commission (FEC) show that the two major cryptocurrency trading platforms Gemini and Crypto .com have contributed over $21 million to the super PAC “MAGA Inc.” supporting President Trump, making them some of the largest single donors to the committee. Among them, Gemini contributed 1.5 million settled USDC, while the parent company of Crypto .com, Foris DAX, invested two separate amounts of $20 million.

Although this massive donation occurred during a cycle when Trump himself is not seeking re-election, its target is directly aimed at the critical midterm elections in 2026 that will determine control of Congress, with the goal of influencing the direction of digital asset regulation policies in the coming years. This move marks that mainstream crypto companies are no longer content with behind-the-scenes lobbying but are instead engaging in the core political battles in the U.S. with unprecedented scale and directness to ensure the legislative balance tilts in favor of industry-friendly forces.

Analysis of the $21 Million Donation: Strategies of the Two Major Platforms and Industry Consensus

According to detailed documents disclosed by the FEC in early January, this total contribution of over $21 million is clearly composed of two parts, reflecting slightly different participation strategies by Gemini and Crypto .com. Gemini’s contribution is in the form of 1.5 million settled USDC, a typical native crypto operation highlighting its identity as a veteran crypto-native exchange. Crypto .com, through its U.S.-based parent company Foris DAX Inc., made two donations of $10 million in fiat cash, a more traditional political donation approach consistent with its recent strategic efforts to expand mainstream user base and deepen ties with traditional finance and media.

Interestingly, Crypto .com’s increasingly close ties with the Trump camp are noteworthy. Since 2025, the platform has established a partnership with Trump Media & Technology Group as part of its digital asset treasury strategy. The $20 million donation can be seen as a natural extension and deepening of this business relationship at the political level, aiming to convert commercial trust into policy influence through capital ties. Although the paths differ, both exchanges share the same goal: to ensure that a strong voice for the industry exists within the legislative bodies that could determine the regulatory framework in the coming years.

This donation will flow into “MAGA Inc.,” a super PAC currently holding nearly $300 million in war chest funds. Such committees wield enormous influence in U.S. politics because they are not subject to the contribution limits imposed on direct candidate donations and can accept unlimited funds to support specific issues or oppose opponents, mainly through media advertising and voter mobilization. The infusion of large sums from the crypto industry provides the committee with more ammunition to boost candidates supporting cryptocurrency policies in key districts or attack opponents with opposing views. This is no longer industry advocacy from a distance but real political investment aimed at directly influencing election outcomes.

The 2026 Midterm Elections: Key Political Donations and Goals of the Crypto Industry

Main donors: Crypto .com (via Foris DAX, $20 million), Gemini ($1.5 million USDC)

Recipient: The super PAC “MAGA Inc.” supporting President Trump

Total committee funds: approximately $294 million to $304 million

Nature of donations: unlimited political expenditures for advertising, voter mobilization, and direct election influence

Core strategic goal: influence the 2026 midterm elections, ensuring Congress (especially the Senate) is led by parties or legislators friendly to the crypto industry

Other industry donors: Shift4 Payments executives ($1 million), JPMorgan Chase ($over $4 million), OpenAI President Greg Brockman ($25 million)

Why Focus on the Midterm Elections? Congressional Control is the Lifeline of Crypto Regulation

A common question is: since Trump’s presidential term ends in January 2029, and he is not a direct participant in the 2026 election, why is the crypto industry investing such heavy sums now? The answer lies in the unique U.S. political structure—Congress holds the power over legislation and regulation, and the midterm elections will determine control of both chambers of Congress for the next two years. For the crypto industry, which is at a regulatory crossroads, the composition of Congress is more decisive for its survival than the President’s speeches.

In 2026, all 435 House seats and 33 of the 100 Senate seats will be up for election. Currently, Republicans hold a slim majority in both chambers, but Democrats are eyeing a comeback through the midterms. Any change in control could dramatically reshape leadership of key committees. For example, the House Financial Services Committee and the Senate Banking Committee are central to drafting and reviewing core legislation like the “Payment Stablecoin Act” and the “Digital Asset Market Structure Act.” Committee chairs decide which bills go to hearings and votes, and which are indefinitely shelved. An open-minded chair on crypto technology versus a skeptical or hostile one could mean vastly different policy prospects.

Several seats in this election are “life-and-death” for the crypto industry. The most notable is Wyoming Senator Cynthia Lummis. As one of the most outspoken crypto supporters in Congress, Lummis announced in December last year that she would not seek re-election, undoubtedly depriving the industry of a heavyweight advocate. Who will succeed her, and whether her policy stance can be continued, remains a huge unknown. Meanwhile, in Massachusetts, Republican John Dighton, known for his fight with the SEC over XRP holders’ rights, is challenging veteran Democratic Senator Ed Markey. If Dighton wins, he will bring a crypto-savvy insider to the Senate. The contest for these key seats is precisely where the funding from Crypto .com and Gemini aims to exert influence.

From Political Newcomers to Game Changers: Evolution and Risks of Crypto Donation Strategies

The $21 million donation is not an isolated event but a latest example of the maturing and upgrading of the crypto industry’s political engagement strategies. Looking back at the 2024 election cycle, crypto political action committees like Fairshake, Defend American Jobs, and Protect Progress invested over $100 million, supporting friendly candidates through large-scale media buys. Their most notable achievement is helping Republicans regain control of the Senate, such as the approximately $40 million spent in Ohio’s Senate race, widely seen as decisive.

Unlike 2024, when industry groups like Coinbase-funded Fairshake led the effort, a significant change in 2026 is that leading platforms are “getting directly involved” with large-scale direct donations. This sends a strong signal: major crypto companies are no longer content with indirect influence via industry associations but see political risk as a core business risk that must be managed directly with company resources. The actions of Crypto .com and Gemini may trigger a “herd effect,” prompting other well-capitalized exchanges, market makers, or investment funds to reassess their political strategies and increase direct lobbying and donations.

However, this high-profile, direct political involvement is a double-edged sword. On one hand, it can rapidly boost the industry’s voice in Washington, making legislators aware of a powerful voter group and interest coalition with substantial mobilization and funding capacity. On the other hand, it can provoke backlash. Opponents may accuse the crypto industry of trying to “buy policy,” prioritizing its interests over consumer protection and financial stability, thus reinforcing some lawmakers’ stance for tighter regulation. Overly tying oneself to a political figure or party also entails risks if that political force’s popularity fluctuates. The industry must show muscle while demonstrating responsible, bipartisan diplomacy to avoid jumping from one regulatory dilemma into another political trap.

Industry Impact and Future Outlook: A “Legislative War” Defining the Next Decade

The ultimate impact of this massive political donation will be reflected in the regulatory framework for cryptocurrencies in the U.S. over the coming years. Several key legislations remain pending. The most urgent is the stablecoin regulation bill, which aims to establish a federal framework for payment stablecoins and is a prerequisite for large-scale traditional finance participation. Additionally, debates over whether digital assets are securities or commodities, the regulation of crypto exchanges, tax policies, and AML rules are all hotly contested. A Congress friendly to the industry could push for clear, feasible, and innovation-friendly rules; an adversarial Congress might impose strict restrictions or expand enforcement measures.

From a broader perspective, the crypto industry’s political awakening is a necessary step toward mainstreaming and institutionalization. Historically, Wall Street, tech giants (like Silicon Valley), and the pharmaceutical industry have all experienced a transition from being regulated objects to actively shaping regulatory rules. Influencing elections through donations, funding think tanks, hiring former officials for lobbying—these are standard practices for mature industries operating in Washington. The actions of Crypto .com and Gemini show that the crypto industry is rapidly learning these game rules and trying to shift from passive recipients to active rule-makers.

Looking ahead, the 2026 midterm elections are just one key battle in this long legislative war. Regardless of the outcome, the industry’s political engagement will not fade. We may see more diverse strategies: supporting Republicans and also engaging with Democrats open to technological innovation; lobbying at both federal and state levels (e.g., New York, California); and encouraging grassroots mobilization among industry practitioners and users to communicate voters’ direct demands to legislators. This “policy defense war” sparked by the $21 million donation will ultimately determine whether cryptocurrencies are integrated into the mainstream financial system in the U.S. and globally or marginalized as a controversial niche.