Less than four years after the collapse of FTX triggered calls for a sweeping crackdown, the crypto industry has emerged as one of the fastest-growing forces in American politics, spending millions across both parties, reshaping key elections, and transforming itself from a regulatory target into a powerful new political machine.

In 2022, Washington’s dominant question about the crypto industry had little to do with the fine print of securities law. After the collapse of FTX triggered a wave of congressional fury and handed Gary Gensler’s SEC a permission slip to pursue enforcement actions at scale, lawmakers on both sides of the political aisle were openly debating whether the sector deserved regulated status at all.

Cautious…