PiCK

Summary

  • Democrats' control of the U.S. Senate is drawing attention to whether digital-asset (cryptocurrency) regulation will be tightened.
  • If Senator Elizabeth Warren becomes chair of the Senate Banking Committee, oversight of the crypto industry could be strengthened.
  • CryptoSlate said companies such as Coinbase and Ripple could face rising legal costs and reputational pressure from investigations and hearings even if they retain their charters.

Forecast Trend Report by Period

With Democrats in control of the U.S. Senate, attention is turning to whether regulation of digital assets, or cryptocurrencies, will be tightened. CryptoSlate reported on November 14 that Senator Elizabeth Warren, who has maintained a somewhat adversarial relationship with the crypto industry, is increasingly favored to become chair of the Senate Banking Committee in January.

In the U.S. midterm elections held on November 3, Democrats secured majority status in both the Senate and the House. As the balance of power in Congress shifts next year, that could also bring changes to the pro-crypto policies pursued by the Donald Trump administration.

CryptoSlate said that if Warren takes over the Banking Committee, oversight of the crypto industry could be strengthened even without separate legislative changes. Congress could pressure crypto companies and financial regulators through hearings and demands for documents.

Crypto companies such as Coinbase and Ripple that have received federal trust bank charters could become major targets of scrutiny. Warren has already asked the Office of the Comptroller of the Currency, or OCC, for materials related to charter reviews and legal analysis for nine crypto companies.

Warren has also continued to raise concerns about potential conflicts of interest involving the Trump administration and the possibility of insider trading in prediction markets. Last month, she sent letters to Kalshi and Polymarket demanding disclosure of measures taken to prevent illegal trading in election-related prediction markets and of any violations that had been identified.

Still, even if Warren becomes Banking Committee chair, she would not have the authority to directly revoke charters held by crypto companies. CryptoSlate said that even if firms retain approvals they have already obtained, they could still face rising legal costs and reputational pressure as they respond to investigations and hearings.

Uk Jin