Democrats secured majorities in both congressional chambers during the November 3 elections, ending Republican control of Congress when the new session begins in January 2027. The outcome raises questions about President Donald Trump's cryptocurrency policy agenda.
The crypto industry spent more than USD 300 million supporting candidates from both parties across the 2024 and 2026 election cycles. However, the CLARITY Act faces renewed uncertainty after failing to advance through the Senate in September.
President Trump's administration has supported lighter cryptocurrency enforcement, expanded banking access and established a strategic Bitcoin reserve. Meanwhile, some Democrats have also backed cryptocurrency-friendly measures, although disagreements remain over investor protections and regulatory oversight.
"The market may be re-evaluating the risk-reward profile of crypto assets," said Tim Sun, senior researcher at HashKey.
Security concerns also remain following the October 29 Binance hack, which affected an estimated USD 6.3 billion in assets. Binance customers withdrew a net USD 4.72 billion after the exchange began reopening withdrawals.
Additionally, reports on November 5 indicated that Federal Reserve and OCC supervisors had contacted banks to check for unusual activity following the attack. Binance said it was keeping regulators informed, while the agencies declined to comment.
