How a Crypto Lobbyist Convinced Trump to Embrace Digital Assets in 2025

• From Pariah to Power Player: Crypto’s Rise in Washington
• Kristin Smith: The Architect Behind Crypto’s Political Machine
• The $200 Million Gamble: How Crypto Bought Influence
• Will the Clarity Act Survive the Senate Gauntlet?
• Plan B: How the SEC Could Fill the Gaps
• The Bottom Line: Crypto’s D.C. Playbook Is Working—For Now
• FAQs

The crypto industry has undergone a dramatic transformation in Washington, D.C., shifting from regulatory skepticism to political influence in just a few years. At the center of this change is Kristin Smith, head of the solana Policy Institute, whose lobbying efforts helped secure bipartisan support for crypto-friendly legislation like the Genius Act. With over $200 million spent on pro-blockchain campaigns, the industry now faces its next big challenge: passing the Clarity Act, which could redefine U.S. financial markets. But with past setbacks like the FTX collapse still fresh, the question remains—will this momentum last?

From Pariah to Power Player: Crypto’s Rise in Washington

In 2024, the crypto industry was still fighting an uphill battle against regulatory scrutiny. Fast forward to 2025, and it’s now a formidable force in D.C., thanks to aggressive lobbying and deep pockets. Coinbase, Ripple, and others have successfully courted policymakers, including former President Donald Trump, who reversed his earlier skepticism to champion pro-crypto reforms. The turning point? A strategic alliance with figures like Kristin Smith, who co-founded the Blockchain Association back when bitcoin was a niche curiosity for most politicians.

Kristin Smith: The Architect Behind Crypto’s Political Machine

Smith’s seven-year grind in D.C. has been pivotal. She navigated scandals (looking at you, SBF) and regulatory crackdowns, steadily building bridges between crypto firms and legislators. “When FTX imploded in 2022, we were inches away from meaningful legislation,” Smith told Fortune. “But we regrouped.” Her persistence paid off: the Genius Act, which establishes stablecoin rules, passed with rare bipartisan support earlier this year. Now, she’s laser-focused on the Clarity Act—a more ambitious bill that could reshape how digital assets are regulated.

The $200 Million Gamble: How Crypto Bought Influence

Money talks, and the industry spoke loudly. Crypto firms funneled over $200 million into 2024 election campaigns, backing candidates like Trump who pledged to ease regulations. The ROI? A sweeping overhaul of agencies like the SEC and an executive order creating a strategic Bitcoin reserve. “It’s not just about buying votes,” Smith argues. “We’re educating lawmakers on why this technology matters.” Critics, however, warn of a bubble—especially with asset-heavy firms like ethereum treasuries gaining traction.

Will the Clarity Act Survive the Senate Gauntlet?

The House passed its version of the Clarity Act this summer, but the Senate remains a hurdle. Smith pegs its chances at 60%, citing bipartisan appetite for clear rules. “If the WHITE House, Congress, and industry align, it’s doable,” she says. But history looms large: the FTX debacle derailed similar efforts in 2022. Without the Act, firms risk whiplash from future administrations—a vulnerability Smith calls “regulatory purgatory.”

Plan B: How the SEC Could Fill the Gaps

Even if legislation stalls, Smith points to agencies like the SEC stepping in. Case in point: Chairman Paul Atkins recently unveiled “Project Crypto,” a framework to streamline tokenization and super-app development. “Rules don’t always need Congress,” notes a BTCC analyst. “But lasting clarity does.”

The Bottom Line: Crypto’s D.C. Playbook Is Working—For Now

From Trump’s Bitcoin reserve to the Genius Act, crypto’s political wins are stacking up. But as Smith admits, “One scandal could reset the clock.” With the Clarity Act in play, 2025 could be the year digital assets go truly mainstream—or face another reckoning.

FAQs

Who is Kristin Smith?

Kristin Smith is the head of the Solana Policy Institute and a co-founder of the Blockchain Association, the first major crypto lobbying group in Washington, D.C.

What is the Genius Act?

Passed in early 2025, the Genius Act establishes federal guidelines for stablecoins and marks a significant win for crypto regulation clarity.

How much did the crypto industry spend on lobbying?

Over $200 million was spent in the 2024 election cycle to support pro-blockchain candidates and policies.

What’s next for crypto regulation?

The Clarity Act, currently under Senate review, aims to redefine how U.S. financial markets regulate digital assets. Its passage is uncertain but politically plausible.