Republican Senate majority signals more ‘pro-crypto Congress’

The Republican Party has secured majority control of the United States Senate, offering a promising outlook for cryptocurrency regulations in the world’s largest economy.

Republicans took control after securing key Senate seats in Ohio and West Virginia, according to the Associated Press.

Over 240 pro-crypto candidates were elected to the House of Representatives and Senate in a “historic achievement” for clear crypto regulations in the US, according to Anastasija Plotnikova, the CEO and co-founder of Fideum, a regulatory and blockchain infrastructure firm focused on institutions.

Plotnikova told Cointelegraph:

“It paves the way for harmonized crypto regulations that will drive innovation, boost competition and incentivize talent to return. The US crypto industry worked for years to make this happen, and I eagerly await seeing the deliverables implemented.”

A Republican Senate, paired with a presidential administration that supports crypto, could lead to innovation-friendly regulations. This could help the US regain ground as a global leader, particularly as Europe moves closer to implementing its comprehensive regulatory framework, the Markets in Crypto-Assets Regulation (MiCA) bill, by the end of 2024.

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Lighter regulations and more oversight for CFTC

A Republican Senate could finally bring clarity to US crypto regulations, according to Anndy Lian, author and intergovernmental blockchain expert.

He told Cointelegraph:

“The Republican focus on reducing government oversight could lead to a lighter regulatory touch, which would be a win for the industry […] A Republican Senate could mean fewer aggressive anti-crypto moves and more opportunities for open discussions about how to support innovation.”

The new Senate could review delayed business-friendly bills like the Digital Commodities Consumer Protection Act, which would grant the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over digital asset trading, Lian added.

The crypto industry is also hoping to see the approval of the Bitcoin Act, championed by Senator Cynthia Lummis. The bill proposes the creation of a strategic Bitcoin (BTC) reserve for the US, making it the first nation to use it as a “savings technology.”

The bill cited the US’ “soaring inflation rates” and the national debt reaching “unprecedented heights” as the reason for the adoption of Bitcoin reserves to bolster the country’s balance sheet.

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Republican Senate to change SEC oversight over crypto industry?

Controlling the majority of the Senate is at least as important for the future of crypto regulations as the president, according to James Davies, CEO of Crypto Valley Exchange. 

This could significantly change the Securities and Exchange Commission’s oversight over the crypto space, Davies told Cointelegraph:

“This shift changes SEC oversight, which has proven to be as impactful as, if not more than, the SEC chair […] Now we await public announcements from Trump on SEC nominations to fulfill his promises to the US crypto community that supported him.”

Davies hopes that Chris Giancarlo, former CFTC chair, will be nominated for Gensler’s seat at the SEC.

Due to the current regulatory unclarity in the US, Davies’ exchange is planning to geo-block users from the world’s largest exchange, to avoid any potential issues.

Yet, the crypto industry sees the 2024 presidential elections as a net positive. Coinbase co-founder and CEO Brian Armstrong called it “America’s most pro-crypto Congress ever,” which will facilitate clearer crypto regulations.

What does Trump’s victory mean for crypto in the US?

For the latest analysis of Trump’s election victory and the crypto market reaction, tune in to today’s Rise’n’Crypto podcast from Cointelegraph.