Democrats won control of both chambers of Congress, putting the CLARITY Act's path in doubt after it stalled in the Senate in September. Analysts expect tougher consumer protections and stablecoin yield limits in the next draft. Plus, Bitcoin ETFs see $430 in outflows and Canary Capital launches an INJ ETF. CoinDesk's Jennifer Sanasie hosts "CoinDesk Daily."-This episode is brought to you by Grayscale, the world's largest digital asset-focused investment platform. Grayscale's mission is to make digital asset investing simple and open to every investor. Learn more at grayscale.com.

Bitcoin ETFs shed $430 million as a tech route hits crypto and what does a Democratic Congress mean for the Clarity Act?

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US spot Bitcoin ETFs saw $430 million in net outflows Thursday, Fidelity's FBTC led with roughly $200 million followed by BlackRock's IBIT at $105 million.

That erased Wednesday's inflows and brings net redemptions for the week to nearly $870 million.

The Nasdaq fell 5.5% and the S&P 500 dropped 4.3%. Analysts linked the sell off to concerns that Democrat's mid-term sweep could slow AI data center construction.

Democrats have won control of both chambers of Congress and industry experts say it could be the final blow for the Clarity Act.

Analyst Mati Greenspan called the sweep the final nail in the Clarity Act's coffin. The bill couldn't clear a procedural vote in September when Republicans controlled both chambers.

That came despite roughly $170 million in crypto pack spending this election cycle, at least $125 million of it going to Republicans.

The fight between banks and crypto firms over stable coin rewards was never settled and Trump family crypto ties have given Democrats a reason to oppose the bill.

Not everyone is writing it off though, more than 70 House Democrats previously supported the bill and some in the industry see room for a bipartisan version with stronger consumer protections.

And Injective rallied after Nasdaq approved the listing of Canary Capital's staked INJ ETF. The fund begins trading today under the ticker INJC.

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Want trusted crypto research? Check out the stack. Grayscale's blog.

Visit grayscale.com/thestack.