Democrats won control of both chambers of Congress in the November 3 U.S. midterm elections. The result changes the outlook for the CLARITY Act, which already failed a Senate procedural vote in September. Several Democratic critics of the crypto industry could now lead key committees.
Democrats secured majorities in the House and Senate, defeating several Republican lawmakers who supported cryptocurrency legislation. The results followed a cycle in which crypto-linked groups spent more than $170 million backing candidates, according to crypto.news.
Crypto spending fails to stop Sherrod Brown
Former Senator Sherrod Brown defeated Republican Senator Jon Husted in Ohio's special election. Fairshake had previously announced a $30 million campaign against Brown, and the contest drew more than $64 million in crypto-related spending, according to Crypto in America.
Meanwhile, Republicans Bryan Steil, Zach Nunn and Ann Wagner lost their House seats. Steil chaired the House Financial Services Subcommittee on Digital Assets.
Warren and Waters could take committee gavels
Senator Elizabeth Warren, who has repeatedly called for stricter crypto regulation, could become chairwoman of the Senate Banking Committee, according to Coinpedia. Brown previously chaired that committee and has questioned the risks of cryptocurrencies and stablecoins.
In the House, Maxine Waters is expected to return as chair of the Financial Services Committee, replacing Republican French Hill, who is expected to become its ranking Republican.
CLARITY Act has until January 3, 2027
On September 15, senators voted 49–50 against advancing debate on the bill, short of the 60 votes required. That vote was not a final rejection of the legislation.
Republicans still control the outgoing Congress and can attempt another vote during the lame-duck session, Coinpedia reports. The new Congress takes office on January 3, 2027. However, several senators who took part in earlier negotiations rejected the bill over ethics rules, illicit finance and consumer protection.
Bitcoin fell to a six-week low of $75,783 after the election results, then recovered to around $78,554.
Sources: crypto.news, Coinpedia Fintech News
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