The Democratic Party claims to have control of the U.S. Senate

A change in control of the Senate could alter the advancement path of CLARITY Act, reshape the leadership of the committee, and subject Trump-related crypto businesses to stricter scrutiny.

According to the Associated Press, the Democratic Party has won control of the U.S. Senate.

After Democratic Senator Josh Turck (Josh Turek) won the Senate election in Iowa, Democrats and independent candidates who formed a coalition with him increased their number of seats to 51, thereby securing a majority.

This result has reshaped the prospects of the stagnant CLARITY Act and also determined which members of parliament will lead the various committees responsible for regulating the industry.

Control of the Senate by Democrats could also lead to further scrutiny of Trump-related crypto businesses and decisions by regulatory agencies by Congress. The control of the Senate may also affect whether future presidential nominees for regulatory positions will be confirmed.

"It's still too early to accurately determine what this means for the crypto industry, but one thing is clear: without cross-party support, no bill can pass," said Jerome de Teixeira, president of Ethereum France ( Ethereum France ) and co-founder of EthCC, to Cointelegraph.

“CLARITY Act failed to pass in the September Senate procedural vote with 49 votes to 50. If it still hasn't passed by January, the next Congress will have to start over. As a result, the industry will have to return to the negotiating table to once again seek support for blockchain from a substantive perspective.”

De Teixe stated that some of the Democratic Party's demands could help to strengthen the regulatory framework of the industry.

"Conflict of interest rules and customer protection obligations are elements that a mature industry should welcome. In Europe, we have already coexisted with these rules within the MiCA framework," he said, referring to the European Union's regulations on the supervision of crypto asset markets ( Markets in Crypto-Assets regulation ).

However, he warned that encryption policies should not be hardened along partisan lines.

The greatest risk facing the US crypto industry is that it becomes a partisan issue; this could set back the United States by several years.

Fred Xu, co-founder and CEO of D3, and a core contributor to Doma Protocol ( Fred Hsu ), also stated that to establish sustainable regulation, support from both parties is necessary.

"Midterm elections serve as a reminder to the industry that we should not expect any one political party to accomplish this task alone. It is now time to clarify our positions to members of both parties," Xu said in comments provided before the election.

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