Democrats retook the House and the Senate in Tuesday's election, and the crypto industry now faces a less friendly Congress in 2027 and 2028. Incoming committee leaders have already signaled subpoenas and oversight hearings, while the chances of a crypto bill look slim.
Democrats retook both the House of Representatives and the Senate on Tuesday night, and the crypto industry now has to prepare for a less friendly Congress. As of press time, Democrats were projected to hold at least 54 Senate seats and over 253 House seats. Crypto wasn't exactly a major factor in the election, CoinDesk has reported.
Incoming chairs warn of subpoenas
Senator Richard Blumenthal, who will head the Senate Permanent Subcommittee on Investigations, sent a fresh round of letters on Thursday to companies tied to the president, including World Liberty Financial, Fight Fight Fight LLC, Binance and Tether.
The letters ask executives to begin responding to records requests by Nov. 30, 2026. They also warn that failing to produce the records by Jan. 4, 2027 will leave the subcommittee considering alternative measures. Senator Elizabeth Warren, who will head the Senate Banking Committee, has also sent letters over the past year about the crypto charters the Office of the Comptroller of the Currency issued.
Not everyone expects a broad assault. According to Ron Hammond of Wintermute, senior Democrats are signaling that investigations will be targeted: "It'll be a lot more targeted versus attacking the industry as a whole."
Legislation faces a narrow path
However, the chances of a crypto bill working its way through Congress in the new year are slim. Any market structure bill would have to clear the Banking Committee under Warren and the Agriculture Committee, which Senator-elect Sherrod Brown will likely chair, according to several individuals.
Rep. Maxine Waters is working on a bill that could advance some market structure proposals, a person familiar with the effort told CoinDesk. That person said it is unlikely to pass, but it would define a Democratic position on the issue.
Industry voices are already adjusting. Kristin Smith, interim CEO of the Blockchain Association, said stablecoins now have a federal regulatory framework and there are actual rules on the books, so the approach to Democrats should differ from 2024.
Crypto PACs take a hit
The election also marked major setbacks for crypto political action committees. Political action committees spent over $170 million combined in the 2026 election. Fairshake backed 33 general election races, and its candidates won 28 of them, while two candidates lost outright, including Wisconsin Rep. Bryan Steil and Michigan Rep. Bill Huizenga.
Brown, who overcame over $60 million in opposition funding from Fairshake and Digital Freedom Fund, unseated Senator Jon Husted. Where the PACs go next is less clear.
Source: CoinDesk
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