The Democratic Party has reclaimed both chambers of Congress following U.S. midterm elections, undoing the red wave that crypto leaders battled for during the 2024 presidential election.
Bitcoin’s price fell to $76,700 in the aftermath, reflecting poor sentiment over a historically hostile party to the industry’s interests.
Democrats Back in Control
Projected results cited by NBC News late Tuesday showed Democrats winning 51 Senate seats, securing a majority, up from 45 (plus 2 independents caucused with Democrats) in the prior term.
That includes a seat once belonging to Senator Thom Tillis (R-NC) – one of the few Republicans who voted ‘no’ during the pivotal Clarity Act vote in September – now won by Democrat Roy Cooper, who has previously supported the presence of “clear, stable regulations” in the space.
Likewise, Democrats are projected to flip 30 Republican seats in the House, securing another majority mandate, with the final tally at 244 blue, and 191 red.
Meanwhile, existing representative Robert Garcia (D-Calif) is now set to become chair of the House Oversight Committee. One of his stated objectives is to investigate “Trump family corruption,” in which he includes the family’s cryptocurrency ventures like TRUMP coin.
Daily Wire political commentator Matt Walsh viewed the election result as a backlash against President Donald Trump – even though his name wasn’t technically on tonight’s ballot. In a post to X on Tuesday, he wrote:
“Trump launched an unpopular and pointless war. Gas prices are too high. People can’t afford groceries. Trump abandoned the American First message. This is why Republicans are getting crushed. It’s very simple.”
Will Crypto Regulation Proceed?
Democrats voted unanimously to block the Clarity Act in September – a laboriously negotiated bill that sought to establish clear standards for how crypto companies operate, and how crypto assets are sorted between the “securities” and “commodities” categories.
Though perceived as a setback to the industry, several analysts acknowledge that practical “clarity” could still be provided with approvals and guidance from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Both agencies can introduce and change rules, but neither has the power to pass laws – which are stickier between administrations.
“The first-order take on the Dem situation for crypto is not that bad,” said Decrypt’s Tyler D on the matter this week. “I think the crypto train is too big to stop at this point. I think the next two years are going to be fine no matter what.”
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