As US midterm elections approach, polls show Democrats poised to flip the House of Representatives.

On October 5, CoinDesk reported that as the U.S. midterm elections approach on November 3, shifts in the political landscape will have profound implications for cryptocurrency industry regulation and legislation. Based on aggregated polling and forecasting data from 270towin, including Kalshi and Polymarket, the Democratic Party is expected to flip the House of Representatives and gain an upper hand in the Senate races.

Control of Congress will determine the level of oversight and budget approval for regulatory bodies such as the SEC and CFTC. Following the collapse of the Clarity Act last month, the legislative focus has shifted to taxation. Currently, the House Ways and Means Committee has advanced a bipartisan crypto tax bill, and Senator Steve Daines recently introduced similar tax legislation in the Senate.

In terms of election interference, Fairshake Super PAC and the Digital Freedom Fund, supported by industry giants, have cumulatively spent over $33 million on advertising placements. Furthermore, the industry expresses concern over the regulatory stance following a potential Democratic majority, particularly the possibility of issuing subpoenas to cryptocurrency firms linked to the Trump administration.