Democrats’ Midterm Sweep Puts CLARITY Act Crypto Rules Back in Play

Democrats’ victories in the 2026 US midterm elections give their party control of both chambers of Congress, creating an opportunity to revive the stalled CLARITY Act and establish federal rules for crypto markets. Public Citizen’s analysis of federal filings found that crypto companies contributed $233 million to political committees during the election cycle, giving the industry significant influence but also increasing scrutiny of its role in Washington.

The results could reshape negotiations when Democrats take control in January. In Ohio, Sen. Sherrod Brown defeated Republican Jon Husted despite crypto-backed political action committees spending $64 million to defeat him. Sen. Elizabeth Warren, a persistent critic of crypto and the most senior Democrat on the Senate Banking Committee, is expected to chair the panel. Rep. Shri Thanedar remains optimistic about passing the CLARITY Act, but said any agreement must include anti-corruption provisions that apply to the president as well as members of Congress.

After the Senate failed to advance the bill in September amid disagreements over ethics rules, House Democrats are considering expanding Rep. Maxine Waters’ proposals into a broader market-structure package. Likely changes include stronger consumer protections, a larger role for the Securities and Exchange Commission and tighter restrictions on public officials’ crypto activities. The negotiations could also separate the industry’s push for clearer regulations from controversies surrounding President Trump’s personal crypto ventures and the business interests of the Trump family.

For crypto companies, the new political environment means political spending alone may no longer determine the outcome of market-structure legislation. The CLARITY Act’s prospects now depend on whether Democrats can turn their majority into a workable bill and whether the industry is willing to accept stronger consumer safeguards and tougher ethics requirements in exchange for federal clarity.