A look inside D.C.’s new financial power scene

December 23, 2024

I traveled down the Northeast Corridor last week to Washington, D.C., where the vibe was downright giddy, at least if you’re in favor of small government (or, as one drunk Senate staffer put it to me, “We’re going to deregulate the SEC.”)

The Blockchain Association—one of the most powerful trade groups in town thanks to its bold stewardship of the crypto campaign financing blitz—was hosting its annual Policy Summit, which could be more aptly described as a victory party. Last year’s event was a more somber affair, with Deputy Treasury Secretary Wally Adeyemo stopping by to chastise the room for money laundering violations, as if the sector’s leaders were a group of misbehaving children. He wasn’t invited back this year.

Instead, lawmakers and regulators were interviewed by Blockchain Association members like Coinbase and Ripple in panels over two days. That included sessions closed to the press, where I’m told that former CFTC chair Christopher Giancarlo, and a former rumored candidate for the “crypto czar” position, called for heads to roll at the SEC after the agency’s aggressive offensive against blockchain companies. David Sacks, who Trump eventually appointed to the nebulous “crypto and AI czar” position, also made an appearance, but not during the portion open to reporters.

While there were a few Democrats who stopped by—notably New York Department of Financial Services superintendent Adrienne Harris and California representative Ro Khanna—this was an overt celebration of the Republican legislative mandate. And each panel, including a flagship session with outgoing House Financial Services Committee chair Patrick McHenry (R-N.C.) and incoming chair French Hill (R-Ark.), touted 2025 as the year for landmark financial reform, both for stablecoin legislation and market structure.

More telling were the conversations I had on the sidelines of the conference and afterward. Legislating is messy, as we saw last week with the blowup over the continuing resolution and government shutdown. The House passed several crypto bills this year, but it didn’t have to fret too much about their actual text since there was no chance the bills would make it through the Senate and past Biden’s desk. Just imagine the fireworks that ensue when lawmakers egged on by Elon Musk and Vivek Ramaswamy try to reshape nearly a century of securities regulation during Trump’s first 100 days. “How is anything going to get done?” one crypto lobbyist mused to me.

Many that I spoke with were still bullish on the prospect of legislation, which would create a clear lane for crypto development in the U.S. and the inevitable entrance of traditional finance and fintech players finally enticed by the promised land of regulatory clarity. And even if Congress doesn’t pass a bill, the balance of power will be flipped at the agencies enacting real policy, from the SEC and CFTC to the OCC (remember the fintech charter?) and CFPB. We’re about to enter a brave new world of deregulation, as prophesied by that bibulous Senate staffer who proudly told me they crashed the after-party for the open bar.

And then there’s Czar Sacks. Hill told me after his panel that he would be meeting with Sacks that afternoon alongside House Speaker Mike Johnson (R-Mo.) to talk about the “outlook for digital assets, crypto, and artificial intelligence.” Meanwhile, everyone in the blockchain industry is vying for a seat on Sacks’s crypto council. Like many things in Trumpworld, it seems like personal connections are the most valuable currency. I’m told that Sacks has reached out to Anatoly Yakovenko, the founder of Solana, which happens to be one of the main blockchain projects that Sacks has backed.

“It’s like the dog catching the car,” said the crypto lobbyist.

Elsewhere…Luisa Beltran scoops that Olympus Partners, a middle market private equity firm, has raised $2.5 billion for its latest flagship fund, a person familiar with the situation told Fortune. The PE firm is targeting $3.5 billion to $3.8 billion for Olympus Growth Fund VIII, which has a $4 billion hard cap. Olympus plans to hold a final close in the first quarter, they said.

And one more thing…With crypto ascendant, which media outlets will serve as the watchdog for the renegade industry? I have been reporting on the turmoil at CoinDesk, where the new owners fired top editors after they objected to the removal of an article about blockchain billionaire Justin Sun.

The next Term Sheet will be in your inbox on Friday, Dec. 27. Happy Holidays!

Leo Schwartz
Twitter: @leomschwartz
Email: leo.schwartz@fortune.com
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Nina Ajemian curated the deals section of today’s newsletter. Subscribe here.

VENTURE DEALS

- Aiwyn, a Charlotte-based automated solutions provider for CPA firms, raised $113 million in funding. KKR and Bessemer Venture Partners led the round and were joined by existing investors.

- TripSuite, a New York City-based software platform for travel agencies, raised $5 million in seed funding. F-Prime Capital led the round and was joined by Bienville Capital Management and Thayer Ventures.

- Vitalic, a Boston-based senior-focused behavioral health platform, raised $4 million in seed funding from Redesign Health and VNS Health.

- PBR Life Sciences, a London-based healthcare data analytics provider, raised $1 million in pre-seed funding from Launch Africa, Microtraction, Kaleo Ventures, and others.

PRIVATE EQUITY

- BearCom, backed by Siris Capital Group, acquired Stone Security, a Salt Lake City-based physical security products and services provider. Financial terms were not disclosed.

- Blackford Capital acquired Security Fire Systems, a Coppell, Texas-based sprinkler system designer and installation services provider. Financial terms were not disclosed.

- LawnPRO Partners, backed by HCI Equity Partners, acquired Meehan’s Lawn Service, a Brook Park, Ohio-based lawn care services provider. Financial terms were not disclosed.

OTHER

- Coralogix acquired Aporia, a San Jose-based AI observability and control platform. Financial terms were not disclosed.

- Deel acquired Assemble, a San Francisco-based compensation management platform. Financial terms were not disclosed.

- Safara acquired Skipper, a New York City-based hotel booking software platform. Financial terms were not disclosed.

- West Monroe acquired Inspired Health, a Boston-based life sciences consultancy. Financial terms were not disclosed.

IPOS

- Venture Global, an Arlington, Va.-based liquified natural gas producer, filed to go public on the NYSE. The company posted $5.1 billion in revenue for the year ending Sept. 30, 2024. Venture Global Partners II backs the company.

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