Democrats have won control of the US Senate, according to the Associated Press.
The majority was secured after Democratic Senator Josh Turek won the Senate race for Iowa, bringing Democrats and independents who caucus with them to 51 seats.
Senate shift changes the path for the CLARITY Act
The result changes the outlook for the stalled CLARITY Act and determines which lawmakers will lead committees that oversee the crypto industry.
Democratic control could also bring closer congressional scrutiny of Trump-linked crypto businesses and regulators’ decisions. Control of the chamber may also affect confirmation of future presidential nominees to regulatory posts.
Jerome de Tychey, president of Ethereum France and co-founder of EthCC, told Cointelegraph that the full impact is not yet clear, but bipartisan backing will remain essential.
“It’s too early to say exactly what this means for crypto, but one thing is clear: nothing will pass without cross-partisan support,” he said.
De Tychey added: “The CLARITY Act failed its Senate procedural vote 49 to 50 in September, and if it isn’t passed by January, the next Congress starts again from scratch. So the industry will have to go back to the table and make the case for blockchain again, on substance.”
Industry figures say durable rules still need both parties
De Tychey said some Democratic demands could help strengthen the industry’s regulatory framework.
“Conflict-of-interest rules and customer protection obligations are things a mature industry should welcome. In Europe, we already live with them under MiCA,” he said, referring to the European Union’s Markets in Crypto-Assets regulation.
He also warned against letting crypto policy harden into a partisan issue.
“The biggest risk for crypto in America is for it to become entrenched as a partisan issue; that could set the US back several years.”
Fred Hsu, co-founder and CEO of D3, a core contributor to Doma Protocol, made a similar point, saying lasting regulation would require support from both parties.
In comments provided to Cointelegraph ahead of the election, Hsu said: “The midterms are a good reminder that the industry can’t rely on one party to deliver them, and should be making its case to lawmakers on both sides now.”
