Bloomberg: With the Democratic Party controlling Congress, the political advantage of the cryptocurrency industry in Washington is waning

According to Bloomberg, over the past two years, the cryptocurrency industry has enjoyed a rare political advantage in Washington: the U.S. President has prioritized digital assets as a national priority, regulators have paved the way for it, and the Republican-controlled Congress has been sympathetic to its agenda. With the Democratic Party's significant victory in the midterm elections and control of Congress, the cryptocurrency industry is facing stricter rules and closer scrutiny of Trump's cryptocurrency business, and its political advantage is waning.

The Democratic Party has indicated plans to impose stricter ethical constraints, stronger consumer protections, and to give the SEC a greater role in regulating digital assets. Cryptocurrency critics Maxine Waters and Elizabeth Warren are expected to wield greater influence in the House Financial Services Committee and the Senate Banking Committee, respectively. However, many of the cryptocurrency industry's achievements are difficult to reverse, such as the stablecoin bill which requires new legislation to be repealed.