Democrats taking majorities in both chambers of Congress could increase oversight of the crypto industry and make it harder to pass comprehensive legislation.
According to CoinDesk’s assessment, when the new Congress takes office in January, the industry could face investigations focused on activities connected to the Trump administration. Democrats’ majority in Congress increases the likelihood that crypto companies and people associated with the industry will also come under scrutiny.
According to projections at the time of publication, Democrats were expected to hold at least 54 seats in the Senate and more than 253 seats in the House of Representatives. Although some races had not yet been called, the party was projected to win majorities in both chambers.
Records requests sent to crypto companies
Senator Richard Blumenthal’s office announced that it had sent new letters to companies and individuals connected to Trump. The recipients included World Liberty Financial, Fight Fight Fight LLC, Binance, and Tether, as well as several people who donated to Trump’s ballroom project.
The letters ask company executives to begin responding to records requests by November 30, 2026. They state that if the requested information and documents are not voluntarily provided by January 4, 2027, the Senate subcommittee may consider other ways to secure compliance. Senators will also have subpoena power when the new Congress takes office.
Ron Hammond, head of Wintermute’s policy and advocacy team, said Democrats could use their investigative powers more selectively rather than directing them at the entire industry. Meanwhile, according to the assessment cited in the source, a comprehensive crypto market structure bill may struggle to advance in the new Congress.
One obstacle facing the bill is the likely chairs of the Senate committees. Elizabeth Warren is expected to chair the Banking Committee, while Sherrod Brown is expected to chair the Agriculture Committee. Since market structure legislation would need to pass through both committees, the bill could have difficulty gaining support.
Not investment advice.