A top Tether executive warned that the upcoming 2026 U.S. midterm elections could have a “seismic impact” on the crypto industry’s trajectory, potentially upsetting the significant legislative and regulatory progress made over the last year on bills like the GENIUS Act.
"Crypto should not be partisan,” Jesse Spiro, Head of Government Affairs at Tether, said during a panel at the Consensus Miami 2026 conference. “Best case is that we have members that are supportive of the industry, supportive of the ecosystem, supportive of good policy.”
The panel discussion highlighted that crypto advocacy groups are preparing to deploy major political spending and grassroots organizing ahead of the November elections. After pouring hundreds of millions into the 2024 election cycle, the industry’s focus is now on “durability,” according to Colin McLaren, Head of Government Relations at the Solana Policy Institute. “You can make the down payment on a house, but you've got to keep paying the mortgage,” McLaren said, referring to the need for sustained political engagement.
At stake is the fundamental question of how crypto will be regulated in the world’s largest economy, with the debate over stablecoin yield becoming a pivotal battleground. The GENIUS Act left unresolved whether affiliates or third parties could offer yield, a gap the proposed CLARITY Act seeks to address by prohibiting rewards “economically or functionally equivalent to interest on a bank deposit,” according to language from Senators Thom Tillis and Angela Alsobrooks.
The Unresolved Fight Over Yield
The distinction between passive holding and active use has become the central fault line in the regulatory debate. Banking groups argue that yield-bearing stablecoins could draw hundreds of billions of dollars away from insured deposits, reducing the availability of credit for consumers and businesses. In comments on a proposed rule from the Office of the Comptroller of the Currency (OCC), they argued for strict prohibitions.
Crypto firms counter that rewards for network participation are fundamentally different from bank interest and are crucial for driving utility. The White House Council of Economic Advisers complicated the banks' case in an April report, suggesting that restricting stablecoin yield may not meaningfully increase traditional bank lending. This leaves regulators to navigate the gap as they finalize rules for the landmark crypto legislation.
A Push for Political Durability
Crypto's political machine is ramping up efforts to ensure its recent policy gains can survive a potential political shift. Stand With Crypto, an advocacy group, now counts nearly 3 million members who are viewing the elections as “an accountability moment,” according to Executive Director Mason Lynaugh.
“They’re going to show up and support the people that supported them,” Lynaugh said at the conference, adding that crypto voters are highly motivated and could sway close races. The industry's strategy is shifting from one-off election spending to building a lasting political infrastructure focused on future priorities like tax reform and protections for software developers.
The 2026 midterms represent a critical test for the crypto industry's political maturity. The outcome could either accelerate a push toward regulatory clarity that fosters innovation or lead to a new wave of restrictive policies that hinder growth and investment in the United States.
This article is for informational purposes only and does not constitute investment advice.
