After Their Victory, Do Democrats Have a Mandate to Go After Crypto? Not So Fast

Democrats’ sweep of both chambers does not automatically mean a sweeping anti-crypto agenda, but it does make near-term legislation harder. The guests argued that the election was a major political break from the last decade, and that many of the newest lawmakers are more millennial, less tied to the old Trump-versus-Biden framework, and not necessarily organized around crypto at all. Even so, there is a real risk that some Democrats will claim a mandate to relitigate the Biden years by targeting the industry.

On legislation, the guests said the Clarity Act looks dead in the lame duck. They argued House Financial Services staff may instead draft a new crypto market structure bill with tougher ethics rules for officials, stricter DeFi requirements, stronger audit and payout rules, and a possible transfer of more oversight from the CFTC to the SEC. The guests said Democrats may accept much of the existing framework, but will fight over the parts that matter most to industry.

For regulators, the expectation was more continuity than upheaval. The guests said SEC Chair Atkins and CFTC Chair Selig are likely to keep moving forward, though the rules they write must be durable enough to survive courts and a future Democratic administration. The real fight, they said, is whether Democrats choose pragmatic policymaking or a revenge-driven response to 2024.