WASHINGTON, D.C. / CryptoWire.AI / – The Clarity Act, the crypto industry’s top legislative priority, is likely to remain on hold until 2028 after Democrats won control of Congress, analysts and executives said. The November 3 results are expected to bring a more adversarial approach to crypto in Washington. Lawmakers are likely to focus on scrutinising President Donald Trump’s crypto business instead of passing supportive rules.
TD Cowen analyst Jaret Seiberg said the return of Sherrod Brown to the Senate hurts the industry’s political influence. Brown, a longtime crypto critic, defeated Republican Jon Husted in Ohio despite heavy spending against him by crypto groups. Seiberg said Democrats would investigate Trump’s crypto interests, including World Liberty Financial. That environment may make it impossible to advance a version of the bill the sector could support, he said.
Mike Townsend of Charles Schwab said he expects Democrats to push for a much tougher version of the legislation next year. Circle’s chief strategy officer, Dante Disparte, said the company is ready to work with new leaders in both chambers. He added that it may take longer for the bill to be brought back. Disparte stressed that Circle takes a bipartisan approach to policy. The Clarity Act failed a key Senate vote in September.
Regulators may keep progress going
Industry leaders say progress can continue without new laws. Joseph Chalom, chief executive of ether treasury company Sharplink, said he expects the Clarity Act to stay on hold through 2028. He said there is still a clear path for stablecoins and for tokenized equities under the Securities and Exchange Commission’s five-year innovation exemption. Chalom argued that once investors see faster settlement and lower costs, the shift will be hard to reverse.
Crypto’s growing role in the financial system may also be difficult to undo. Regulators can continue to advance industry rules through rule-making even if legislation stalls. Coinbase’s Kara Calvert said crypto is fully bipartisan and that the future of finance does not depend on one party or one election. She said the incoming Congress is on track to have a record number of new pro-crypto members.
Pro-crypto candidates still win seats
Stand With Crypto said 19 Senate candidates it considers pro-crypto were elected, compared with eight it rates as anti-crypto. In the House, 228 pro-crypto candidates won against 106 the group views as opposed to the industry. Fairshake had won 29 of the 34 races it spent on, Reuters reported, including three of the six House candidates it prioritised with at least $1 million each. Several races had not yet been called at the time.
In the near term, investors should expect more market volatility as the outlook for regulation shifts. James Butterfill, head of research at CoinShares, said the impact should vary across assets. He said U.S. crypto stocks are likely to be more sensitive than bitcoin, especially firms that rely on new regulatory approvals. Established, compliant operators could benefit from greater scrutiny of rivals, he added. Miners with existing data centres are likely to stay in demand from AI companies, he said.