Democrats will control both the House and the Senate from January after sweeping the US midterm elections on November 3, according to the Associated Press. The party won more than twenty House seats and several Senate seats that were considered safe for Republicans. President Donald Trump stays in the White House, so Washington faces two years of divided government once the new Congress is sworn in on January 3, 2027.
For crypto, the result mainly changes the legislative calendar. The CLARITY Act, the market-structure bill meant to set rules for US crypto markets, stalled in the Senate in September, with Democrats demanding tighter rules on crypto interests held by Trump and his family. The current Congress can still try to finish the bill before early January. If it does not, unfinished bills lapse and would have to be reintroduced, according to the Senate’s own guidance on new Congresses.
From January, Democrats can block new bills and the Senate can hold up nominations for regulators and judges, while Trump keeps his veto. Crypto Insiders concludes that quick approval of Trump’s existing crypto plans has become less likely, though a new compromise is not ruled out.
Markets reacted quickly. The 10-year Treasury yield fell about six basis points to roughly 4.9%, the dollar slid to a one-month low and bitcoin briefly dipped to about $75,700 before recovering toward $78,000.
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