With Donald Trump securing reelection and Republicans flipping multiple Senate seats, the party now holds sway over both chambers of Congress and the White House. Late Wednesday, the Associated Press projected that Republicans clinched at least 218 House seats, solidifying their majority.
Crypto Legislation on the Horizon
Republicans’ control of the House raises the likelihood of significant crypto legislation in the upcoming Congress. Over the past year, the House played a crucial role in advancing crypto-focused bills, even with a slim GOP majority. Expectations of a Democratic takeover were upended when Republican Juan Ciscomani won his race in Arizona, pushing the GOP past the majority threshold. If current trends hold, Republicans could control up to 222 seats.
Despite this, the House will see some turnover. Representatives Matt Gaetz, Elise Stefanik, and Mike Waltz are set to resign, as Trump has tapped them for key executive roles. Gaetz, nominated for Attorney General, has already vacated his seat.
Power Players and PAC Influence
The Fairshake super PAC and its affiliates—Protect Progress and Defend American Jobs—played a pivotal role in securing GOP victories. Backing nearly 60 House and Senate candidates, the PAC saw significant success, including a high-profile win in Ohio, where Republican Bernie Moreno unseated Democratic incumbent Sherrod Brown. Moreno’s campaign benefited from a $40 million boost from Fairshake, highlighting the PAC’s influence.
While most Fairshake-backed candidates won in safe districts, a few key races didn’t go their way, including contests in Colorado and California. Still, the PAC’s overall track record demonstrates its clout in shaping the Republican majority.
Legislative Priorities: Crypto and Beyond
Outgoing House Financial Services Committee Chair Patrick McHenry (R-N.C.) was instrumental in passing the Financial Innovation and Technology for the 21st Century Act (FIT21), a landmark crypto market structure bill. This legislation sought to establish clear regulatory frameworks for different crypto asset types. The House also passed a resolution to overturn the SEC’s Staff Accounting Bulletin 121 (SAB 121), which mandates how institutions report digital assets. However, while SAB 121 passed the Senate, it was vetoed by President Biden, and FIT21 never made it to a Senate vote.
Republicans now face a leadership shuffle within the Financial Services Committee. Potential successors include Reps. Andy Barr (R-Ky.), Frank Lucas (R-Okla.), French Hill (R-Ark.), and Bill Huizenga (R-Mich.). Meanwhile, Democrat Maxine Waters will remain the ranking member. Waters and McHenry have long collaborated on stablecoin legislation, though its fate in the upcoming Congress remains uncertain.
Crypto Bulls and Market Ripples
The Republican win comes amid a crypto market surge. Bitcoin has hit a record high of $93,000, fueled by soaring U.S. demand, while Dogecoin has skyrocketed over 100% in the past week.
Source: BNC Bitcoin Liquid Index
With political alignment favoring pro-crypto legislation and markets booming, the next Congress could be pivotal in shaping the regulatory landscape for digital assets. Whether through FIT21 or other initiatives, the GOP is poised to leave its mark on the future of crypto in America.
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