Galaxy Digital’s research head Alex Thorn sees new risks for crypto policy after Democratic wins in both chambers. In a Nov. 6 election assessment, Thorn said Senator Elizabeth Warren of Massachusetts is expected to chair the Senate Banking Committee. Representative Maxine Waters of California is expected to lead the House Financial Services Committee. Those two panels oversee financial regulation, so the leadership change matters for how crypto gets watched and how bills move.
Committee Leadership in Focus
Thorn also flagged Ohio as a notable result. Former Senate Banking Committee Chair Sherrod Brown defeated Senator Jon Husted. Galaxy called Brown’s return the most significant congressional loss for digital asset advocates. With Warren and Waters in top spots, Trump family businesses may face closer scrutiny. That includes World Liberty Financial, a crypto venture tied to the USD1 dollar-backed stablecoin. Thorn noted Washington law firms are hiring lawyers to help clients prepare for possible investigations. He does not expect much movement in Congress on major digital asset legislation.
CLARITY Act Stalls
The CLARITY Act, which would set federal rules for crypto markets, hit a Senate setback before the election. A Sept. 15 procedural vote to move the bill toward debate failed 49-50, leaving it stalled. Ripple Chief Legal Officer Stuart Alderoty called for a more coordinated industry policy message after that result. House Democrats were discussing expanding Waters’ proposed crypto investor and consumer bill of rights into broader market structure legislation. Even so, federal agencies could keep clarifying crypto rules under existing authority. Thorn pointed to the SEC, the CFTC, and banking regulators.
Markets and Local Ballot Fights
The political shift came with market volatility. Bitcoin recovered above $80,000 before falling during the broader Nov. 5 sell-off. Galaxy said technology, artificial intelligence, data center stocks, and crypto traded lower together. The firm also reported that voters opposed data center development in 40 of 41 local ballot measures across 10 states.
Mixed Industry Results
Ripple CEO Brad Garlinghouse stressed bipartisan election wins and called for clear rules and continued digital asset development in the United States. Alderoty said the company looked forward to working with both parties. Galaxy highlighted the reelections of Democratic Representatives Josh Gottheimer and Ritchie Torres, along with Republican House Agriculture Committee Chair Glenn Thompson. Michael Saylor, executive chairman of Strategy Inc., pointed to bitcoin reserve supporters winning in both parties. Republican Byron Donalds won Florida’s gubernatorial election after backing a federal bitcoin reserve, while Democrat James Talarico won a U.S. Senate seat in Texas. Talarico had supported his state’s reserve legislation while in the Texas House.
The industry’s results varied by race. Researcher Molly White found that the side backed by crypto and AI political action committees lost nine of 12 competitive races called as of Nov. 4. In safer seats, the same tracker recorded wins for all 40 industry-backed candidates. That split may shape how the industry argues its case, though it is not clear yet how much either party will prioritize crypto legislation.
