Analysis: Democrats Take Control of US Congress, Crypto Industry Faces New Regulatory Headwinds

November 5: According to The Block, Democrats have won control of both the Senate and the House of Representatives in the midterm elections, leaving the crypto industry facing new political headwinds. Crypto advocacy group Stand With Crypto said that 19 pro-crypto senators and 226 pro-crypto representatives have been elected, while 8 anti-crypto senators and 106 anti-crypto representatives were also elected. Kara Calvert, Coinbase's Vice President of US Policy, said bipartisan legislation will face headwinds next year, but crypto remains a bipartisan issue.

In the Ohio Senate race that the crypto industry was watching closely, crypto PACs including Fairshake spent heavily to oppose Democrat Sherrod Brown, but Brown ultimately defeated Republican Jon Husted. Brown previously served as chairman of the Senate Banking Committee and could return to the Senate as early as December 15, where he may play an important role in oversight of the industry. TD Cowen believes that given Brown's victory, the Clarity Act, which has already been stalled in the Senate, is unlikely to advance over the next two years, and that Democrats may also investigate the Trump family's crypto businesses, including World Liberty Financial.