Next week’s midterm elections in the U.S. could bring new scrutiny, including of major companies’ bank charters, rather than clear the way for the regulations crypto has been waiting for.
According to The Block, a change in control of Congress could reshape negotiations over crypto regulation and scrutiny of companies. At the time of writing, prediction platform Kalshi priced Democrats’ chances of winning the Senate at 64 percent and the House of Representatives at 90 percent.
Over the past two years, a Republican-controlled Congress passed the stablecoin legislation GENIUS Act. The Clarity Act, which aims to clarify authority and rules in the crypto market, passed the House of Representatives in 2025 but stalled in the Senate. Disputes between banks and crypto companies over stablecoin rewards, along with objections to President Donald Trump’s crypto-related financial interests, were among the issues that made a compromise difficult.
Is there an opportunity for crypto legislation after the election?
Former New York Governor and OKX board member Andrew Cuomo said he did not expect progress during the transition between the election and the new Congress taking office, and that he hoped the bill would be considered in the new Congress.
Democratic Senator Angela Alsobrooks, who has been involved in the negotiations, left open the possibility that the bill could advance during the transition. However, she said she did not think it was realistic for a new Democratic-controlled Congress to make the Clarity Act a priority. Alsobrooks said Democrats were ready to negotiate but argued that Republican leadership had halted the talks.
Ripple and Coinbase bank charters could come under scrutiny
If Democrats win a majority in the Senate, Elizabeth Warren could lead the Banking Committee. According to Wintermute’s head of policy and advocacy, Ron Hammond, this scenario could mean more intense scrutiny of crypto companies.
Hammond predicted that Warren could use the committee’s authority to demand documents and testimony, and that it could examine new bank charters granted by the Office of the Comptroller of the Currency (OCC) to companies such as Ripple, Coinbase, and World Liberty Financial, which is connected to the Trump family.
In her own statement, Warren said she was ready to work with both parties and crypto representatives on meaningful legislation that protects national security and the economy and reduces corruption. She argued that Republicans would need to stand up to Trump for that to happen.
Changes to committees could open the door to a narrower bill
The Sherrod Brown–Jon Husted race in Ohio is also important for the crypto agenda. The pro-crypto political action committee Fairshake had announced that it would allocate 30 million dollars to support Husted. Hammond believes that if Brown is elected, his seniority could put him in charge of the Senate Agriculture Committee and slow the progress of crypto legislation.
In the House of Representatives, if Democrats win, Maxine Waters, Sean Casten, and Bill Foster are among the names being considered for the Financial Services Committee. Hammond said he did not expect the current Clarity Act to advance under any of them as chair, and that Casten in particular could focus on oversight.
Still, a deal on narrower legislation that also includes Democratic priorities is considered possible. Trump would also need to sign such a bill into law. Lindsay Fraser of the Blockchain Association emphasized that clear rules for crypto are needed regardless of which party wins a majority in Congress.
Not investment advice.