Democratic sweep puts crypto on defensive in Washington

Democratic gains in the midterm elections are expected to make Washington’s approach to crypto regulation less predictable and could delay key legislation. Industry figures say support for clear rules crosses party lines, but one executive expects the proposed Clarity Act to remain on hold through 2028.

As of Thursday morning, crypto advocacy group Stand With Crypto counted 19 pro-crypto Senate winners and eight it classifies as anti-crypto; in the House, the figures were 228 and 106. Fairshake, a pro-crypto super PAC, had won 29 of the 34 races it backed, according to Reuters. Analysts expect possible market volatility, with US crypto companies that depend on new regulatory permissions potentially more exposed than bitcoin.