Crypto industry faces new Congress as Democrats take control
Democrats take control of House and Senate
Democrats took control of both chambers of Congress after results on Tuesday, ending a period described in the report as pro-crypto in Washington.
The change means the crypto industry will deal with more oversight and may need to find new allies in a party described as more divided on crypto.
Key numbers from the results and spending
- Stand With Crypto said 19 pro-crypto lawmakers were elected to the Senate and 226 to the House.
- The same group said 8 anti-crypto senators and 106 House members were also elected.
- Fairshake spent $154.5 million in primaries and the general election, with over $13.5 million going to Republican Sen. Pete Ricketts in Nebraska, according to the report.
- Americans for Financial Reform reported Fairshake raised $106.2 million.
- Fortune reported crypto PACs overall spent $170 million on the midterms.
- Pro-crypto PACs reportedly spent over $60 million alone in the Ohio Senate race.
Ohio Senate race draws focus to Sherrod Brown
The Ohio Senate race was a major focus for the industry. Former Democratic Sen. Sherrod Brown defeated SWC-endorsed Republican Sen. Jon Husted, despite tens of millions of dollars spent by the crypto political action committee against Brown.
Brown previously chaired the Senate Banking Committee, which has jurisdiction over digital assets. The report describes him as having been viewed as critical of crypto.
Because he won a special election to fill Vice President JD Vance's Senate term, Brown could return to the Senate as early as Dec. 15. Anchorage Digital's Kevin Wysocki said Brown and his staff had been open to constructive conversations about crypto when he was chair.
Industry voices differ on outlook
Some in the industry said crypto is bipartisan and that lawmakers on both sides support digital assets. Kara Calvert of Coinbase said there would be headwinds for bipartisan legislation next year, but described crypto as bipartisan.
Wysocki said many new members are pro-crypto and that younger members are more familiar with the technology and more open to it. He described the outcome as bullish for crypto overall and said he expected improvement over time regardless of party.
The report also said a Democratic sweep means more oversight and close to no chance of the industry getting legislation it wants on the table.
Spending on campaigns prompts calls for recalibration
Fairshake spokesperson Geoff Vetter said in an emailed statement to The Block that Fairshake played a meaningful role in winning competitive races in 2026 and would do so again in 2028. He said newly elected and current members will have a choice on protecting consumers and American jobs, and that the group will be watching.
One unnamed crypto industry source said PACs and trade associations will have to recalibrate and double down on being bipartisan. The source questioned what was gained from spending on Brown's race and suggested the money could have been better spent on lobbying.
The same source pointed to the Clarity Act, broad crypto legislation that passed the House but stalled in the Senate in September, as an area lobbying could have focused on.
What remains uncertain for legislation
Investment bank TD Cowen said the Clarity Act is unlikely to advance over the next two years given Brown's win.
TD Cowen's Washington Research Group, led by Jaret Seiberg, said Democrats will investigate Trump's crypto entanglements, including World Liberty Financial. Seiberg wrote that the resulting political environment may make it impossible to advance a version of Clarity that the crypto sector could back.
These are analyst assessments, not confirmed outcomes, and they differ from the more positive views expressed by Calvert and Wysocki.
What to watch next
Wysocki said focus will turn to taxes and security and hacks. He noted the election came days after what the report calls the largest crypto hack on record of Binance for over $6 billion, and said Congress will ask how to make security at financial institutions stronger.
Brown's possible return as early as Dec. 15 and debate over oversight and the Clarity Act are other next steps described in the report.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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