Forecasts indicate an 82% chance of Democrats winning the House of Representatives in 2026, potentially complicating the path for pro-crypto legislation. Historically, Democratic leadership has favored tighter regulation and consumer protection over the more innovation-focused approach of Republicans. This shift could result in continued regulatory uncertainty, with key proposals for digital asset classification and startup safe harbors facing delays or revisions. If Democrats secure the House, the SEC and other regulatory bodies may maintain their stringent enforcement stance, potentially pushing U.S.-based crypto innovation overseas. The crypto industry is expected to increase lobbying efforts to foster bipartisan support and clearer regulatory frameworks, but the next two years may focus more on maintaining current gains rather than advancing new initiatives.