Nobel economist warns crypto money is gearing up to sway 2026 midterms

In a recent commentary, Nobel laureate Paul Krugman warned that the cryptocurrency industry is orchestrating a scheme to buy influence in the upcoming midterm elections, building on earlier contributions to Donald Trump and his sons. He argues that despite limited consumer use—only about 2 % of Americans have used crypto for non-investment purposes—the sector has become a powerful political force, spending billions to defeat crypto-skeptical Democrats and to turn a blue Ohio Senate seat red, spending $38 million then another $30 million to keep it Republican.

Krugman predicts a fresh influx of right-wing money, especially from crypto, will fund last-minute advertising and possibly outright bribery, even as polls show Democrats holding a 97 % chance for the House and strong odds for the Senate. He cites Chuck Schumer’s warning about the lobbying group Fairshake and notes the sector’s reliance on illicit activities, including Iranian sanction-busting. Krugman concludes that the outcome will test how much money can shape democratic elections.