Eleanor Terrett, founder and journalist of Crypto in America, a U.S. media outlet specializing in digital assets, assessed the results of the 2026 U.S. midterm election count, saying that “the outcome was broadly devastating for the Republican Party and the crypto industry.” Her analysis is that, despite the industry pouring a record amount of political funding—amounting to tens of millions of dollars—through super PACs and other channels, the congressional balance of power has shifted in favor of the Democrats, leaving the industry facing intense scrutiny in Washington and legislative gridlock.
Terrett summarized the key political and legislative changes that the election results are expected to bring to the digital-asset regulatory environment as follows:
- Key regulator Sherrod Brown wins re-election: Despite the crypto industry spending more than $64 million (approximately 88 billion won) on efforts to defeat him, Democratic Senator Sherrod Brown successfully defended his seat. As a result, the possibility has increased that Brown will once again take a leadership role on a key Senate financial committee.
- Series of defeats for crypto-friendly House members: Major Republican representatives who had led crypto-friendly legislation in Congress, including Bryan Steil, Zach Nunn and Ann Wagner, were defeated one after another.
- Power shift on the Senate Banking Committee and a stronger position for Kirsten Gillibrand: As the Democrats move toward reclaiming the Senate majority, Republican control centered around Senator Tim Scott has weakened, increasing the likelihood that the chairmanship of the Senate Banking Committee will pass to the Democrats. The influence of Democratic Senator Kirsten Gillibrand, who has led bipartisan regulatory proposals, is expected to expand further.
- Maxine Waters could return as chair of the House Financial Services Committee: With the House majority expected to change hands, Democratic Representative Maxine Waters, a prominent crypto skeptic, is now considered a strong candidate to become chair of the House Financial Services Committee.
- Defensive line for the crypto-friendly camp: Despite the difficult electoral landscape, crypto-friendly Republican Senator Pete Ricketts, the ranking member of the Senate Banking Committee, and Representative Andy Barr won re-election, preserving a defensive line for the camp in Congress.
The midterm election results are expected to sharply weaken momentum for reviving within the year or in the next legislative session market-structure bills such as the Clarity Act, which was previously rejected by the Senate. Rather than comprehensive market-development legislation led by Republicans, hearings and intensive regulatory oversight led by Democratic committee chairs, along with limited legislative negotiations focused on investor protection, are expected to become the new direction in Washington.