Alex Thorn: Democratic control of Congress hinders substantial progress in key digital asset legislation.

Galaxy Research Director Alex Thorn stated that with Democrats winning both houses of Congress, significant progress on key digital asset legislation is unlikely. Leadership of congressional committees is expected to change, with Warren potentially becoming chair of the Senate Banking Committee and Maxine Waters expected to regain control of the House Financial Services Committee. Several Republican lawmakers who support the crypto industry lost their seats, but the pro-crypto camp did not suffer a complete defeat. According to Stand With Crypto, 19 pro-crypto senators and 226 pro-crypto representatives have been elected. Molly White's tracking shows that in 12 closely contested elections, the crypto and AI political action committee lost 9, but won all 40 elections. House Democrats are discussing expanding Maxine Waters' Crypto Investors Consumer Rights Act into a broader crypto market structure bill. In the absence of legislation, the SEC, CFTC, and banking regulators have already defined crypto rules within their existing legal authority, giving the Trump administration two years to continue its work.