The cryptocurrency industry spent big and lost often in this week’s Illinois primaries.

As the industry prepares to make massive donations in the 2026 midterm elections to replicate its success in 2024, the Illinois losses mark an early setback for firms that are trying to establish themselves as power players in American politics.

Crypto companies flooded the state’s Democratic primaries with millions of dollars to promote candidates they believed would have a light touch when it came to regulating digital assets. AI firms, meanwhile, backed opposing candidates and seemed to cancel each other out.

Using super Pacs that are allowed to spend unlimited sums of money, crypto and AI companies ran television advertising and distributed…