Bloomberg: With Democrats Controlling Congress, Crypto's Political Edge in Washington Fades

November 7 — According to Bloomberg, over the past two years the crypto industry enjoyed a rare political advantage in Washington: the U.S. president made digital assets a national priority, regulators paved the way for it, and the Republican-controlled Congress was sympathetic to its agenda. Now, with Democrats winning big in the midterm elections and taking control of Congress, the crypto industry faces stricter rules and closer scrutiny of Trump's crypto businesses, and its political advantage is fading.

Democrats have said they plan to call for stricter ethics restrictions, stronger consumer protections, and a bigger role for the SEC in regulating digital assets. Crypto critics Maxine Waters and Elizabeth Warren are expected to gain greater influence at the House Financial Services Committee and the Senate Banking Committee, respectively. Still, many of the crypto industry's achievements are hard to reverse — for example, repealing the stablecoin bill would require new legislation.