Grayscale and BlackRock: US Midterm Election Results Will Not Change Crypto Industry's Growth Trajectory

Nov 5 — According to CoinDesk, despite the Democrats winning the US midterm elections, Grayscale still believes the crypto industry's future depends more on overseas demand and institutional adoption than on Washington. Zach Pandl, Grayscale's head of research, said the GENIUS Act is an important step forward for stablecoins, but regulatory clarity and institutional adoption have deeper foundations. He previously estimated that 80% to 85% of global crypto activity takes place outside the United States, and noted growing demand for dollar stablecoins in South America and Southeast Asia.

Robert Mitchnick, BlackRock's head of digital assets, also downplayed the election's impact on its crypto business, saying Bitcoin and Ethereum already have most of the regulatory clarity needed for investment products. Meanwhile, the Clarity Act failed to advance in September; with Democrats taking control of Congress in January, some executives believe the bill's current version has little chance of passing, though there remains room for a revised bipartisan agreement.