Galaxy Research Director: Democratic Victory Alters Crypto Policy Landscape, Key Legislation Expected to See Little Substantive Progress

November 7 - Alex Thorn, Head of Research at Galaxy, stated that after the Democrats won both chambers of the U.S. Congress, significant progress on key digital asset legislation is expected to remain difficult to achieve. Congressional committee leadership will also change. Warren may become Chair of the Senate Banking Committee, and Maxine Waters is expected to retake control of the House Financial Services Committee.

Several crypto-friendly Republican lawmakers lost their races, but the pro-crypto camp did not suffer an across-the-board defeat. According to Stand With Crypto, 19 pro-crypto senators and 226 pro-crypto representatives have been elected. Molly White's tracking shows that in 12 highly competitive races, the side supported by crypto and AI political action committees lost 9, but won all 40 safer races.

Reports indicate that House Democrats are discussing expanding Waters' previously proposed Crypto Investor Consumer Protection Act into a broader crypto market structure bill. However, he reiterated that he does not expect Congress to make substantive progress on key digital asset legislation. In the absence of legislation, the SEC, CFTC, and banking regulators have already clarified crypto rules within their existing statutory authority, and the Trump administration still has two years to continue advancing related work.