The ongoing US midterm elections and the outcome could have a larger impact on the future of crypto regulation in the USA. Some early hints indicated a clear lead to the Republican Party for the House of Representatives, while there is ambiguity in Senate.
If the Republicans secure a majority in both the House and the Senate, political gridlock can brew with the White House under the Democrat control for another two years.
According to reports, the crypto industry had been expecting the year 2022 to have regulatory clarity with lawmakers at least setting a road map initiative to regulate crypto.
With barely two months to end the year, chances of any crypto-related bills being passed by Congress appear slim, the report added. The crypto industry’s general sentiment is that Republicans are more favorable than their Democratic colleagues in crypto matters.
Democratic Representative Brad Sherman is an acerbic critic and in 2019 he proposed a ban on crypto asset purchases in the US.
Republican-controlled Congress is expected to push more aggressively to pass bills the crypto industry has been demanding. Republicans may also pressure regulators like the SEC to relax their aggressive stance towards the crypto industry.
The collapse of Bankman-Fried and FTXs will likely shroud negative views on crypto in Washington. However, crypto backers Republican Rep. Patrick McHenry and Senator Cynthia Lummis pointed out that the collapse itself is a signal that the industry needs better regulation.
Mike Conaway, a former chairman of the House Agriculture Committee now lobbying for the crypto industry, expressed optimism that most things on the crypto front have been relatively bipartisan and Democrats and Republicans can still have space to work together.
