US midterm elections deal 'heavy blow' to crypto industry: Democrats take control of Congress, multiple crypto-friendly lawmakers lose races

November 4th: Despite the crypto industry investing over $170 million in this midterm election cycle, Democrats have successfully regained control of both the Senate and the House, with several key crypto industry allies losing their races, and Washington's crypto policy environment may be poised for a shift.

In key races, Ohio Democrat and crypto critic Sherrod Brown defeated Republican candidate Jon Husted to return to the Senate; Senator Elizabeth Warren is expected to take over as chair of the Senate Banking Committee. Crypto-friendly Republican Representatives Bryan Steil, Zach Nunn, and Ann Wagner all failed to win re-election. Although House Financial Services Committee Chairman French Hill is expected to hold his seat, with Democrats regaining control of the House, he is expected to lose the committee chairmanship, with Democratic Representative Maxine Waters taking over.

Full Democratic control of Congress will significantly increase regulatory and political scrutiny pressure on the crypto industry. The relationship between the Trump administration and the crypto industry, the presidential family's crypto businesses, and regulatory decisions by the SEC and CFTC could all become focal points of congressional investigations. The likelihood of passing crypto market structure legislation under the existing framework is also greatly reduced, and future legislation may incorporate more of the Democratic Party's policy priorities.