By Joe Light

The crypto industry's latest show of political might may not be enough to push through digital asset legislation long sought by firms, including Coinbase Global.

The industry poured millions of dollars into a Texas primary campaign that ultimately unseated a veteran congressman who has opposed the so-called Clarity Act, a bill setting rules for crypto firms. But that campaign cash still might not be enough to get the crypto-friendly bill over the finish line.

Last year, Texas lawmakers redrew the state's congressional map, leading to the primary clash between Democratic incumbent congressmen Al Green, who has served since 2005, and Christian Menefee, who took office this year. Menefee won the election on Tuesday, bolstered by $5 million in spending tied to the crypto political action committee Fairshake.

Green had voted against crypto-friendly bills and said the industry sought to "control" Congress with its campaign spending. Stand With Crypto -- a Coinbase-backed grassroots group that rates lawmakers' crypto support -- gives him an "F" rating.

"Rep. Green's defeat proves that anti-crypto hostility carries real electoral consequences, making him the first Democratic incumbent this cycle to lose his seat," Fairshake spokesman Geoff Vetter said in a statement. "Fairshake was the difference-maker in this race, and we will continue to aggressively back leaders like Rep. Menefee across the country."

Fairshake, Coinbase, and other industry players are pushing hard this year for the Senate to pass the Clarity Act, which, among other things, would put most crypto trading under the purview of the Commodity Futures Trading Commission. Digital assets firms and banks have fought over the bill for months.

Earlier this month, a Senate committee advanced the bill on a bipartisan vote, significantly raising its chances of passing the full Senate. The House passed its own version of the bill last year, but would have to vote again after the Senate's revisions for it to reach President Donald Trump's desk.

Now, the bill's main enemy is the clock and Congress's jam-packed schedule this year. In addition to the crypto legislation, the Republican-led Congress hopes to pass a major housing bill, an extension of federal surveillance powers, and funding for Immigration and Customs Enforcement and border patrol, among other priorities. Congress's time will be especially limited after the August recess, when many lawmakers' attention will turn to the November midterm elections.

For the crypto bill, the remaining outstanding issue is whether Democrats and Republicans can agree on a provision that would limit Trump and his family from profiting on crypto. Among other ventures, the Trump family founded World Liberty Financial, which issues its own tokens and is attempting to grow into a prominent crypto platform. The White House says that Trump and his family's crypto interests aren't a conflict of interest.

If there's no near-term breakthrough on the ethics provision, it won't matter how much the crypto industry threatens to spend in the coming elections.

"The problem is that the upcoming election leaves little room for further delay," wrote TD Cowen analyst Jaret Seiberg in a research note this week.

Congress clearly has the will to pass a crypto-friendly bill. It's just running out of time.

Write to Joe Light at joe.light@barrons.com

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May 27, 2026 13:36 ET (17:36 GMT)

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