The Democrats' victory in both houses of Congress is likely to make Washington tougher for the crypto industry and stall the market structure legislation known as the Clarity Act, CNBC reports, citing policy analysts.
The sector spent more than $200m trying to influence the midterms. TD Cowen analyst Jaret Seiberg said Sherrod Brown's return to the Senate in Ohio, after the industry campaigned against him, damaged its political clout, and predicted Democrats would investigate President Donald Trump's own crypto interests, including World Liberty Financial.
Charles Schwab's Mike Townsend said he expected Democrats to push for a much stricter version of the bill next year. CNBC noted that crypto is now more embedded in mainstream finance than in the past, and that more Democrats have warmed to the industry in recent years.
Source: CNBC