The upcoming US midterm elections could shift congressional control toward tighter crypto oversight, with prediction market platform Kalshi assigning Democrats a 64% probability of winning the Senate and a 90% probability of reclaiming the House. A change in leadership is expected to stall the Clarity Act, the primary crypto regulatory framework currently under debate. Democratic Senator Angela Alsobrooks stated that a Democrat-controlled Congress would not prioritize advancing the legislation.
If Democrats capture the Senate, Senator Elizabeth Warren is set to assume the chairmanship of the Senate Banking Committee. Ron Hammond, policy director at Wintermute, anticipates Warren will deploy subpoena powers and intensify scrutiny on the Office of the Comptroller of the Currency's recent approvals of new bank charters for Ripple, Coinbase, and World Liberty Financial.
US Midterms Threaten Crypto Legislation as Democrats favored to retake Congress
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