TD Cowen warns Democratic Congressional victory would stall CLARITY Act

A Democratic sweep of the United States Congress in the midterm elections would effectively kill the proposed CLARITY Act for the next two years, Bitcoin Magazine Markets reported. Jaret Seiberg, a Washington analyst at investment bank TD Cowen, stated in a client note that such an outcome would sour the political climate for cryptocurrency legislation. [1][8][9][11]

According to Bitcoin Magazine Markets, TD Cowen noted that polling and prediction markets suggest Democrats are likely to take both chambers of Congress. Seiberg wrote that a Democratic majority would hand Senator Elizabeth Warren the leadership of the Senate Banking Committee. In addition, the bank warned that Congressional Democrats could use their majority to block presidential appointments to the Securities and Exchange Commission and the Commodity Futures Trading Commission. [1][8][9]

The 2026 midterm elections take place during the second term of President Donald Trump, with all 435 seats in the House of Representatives and 35 Senate seats contested. As FTMQ Crypto reported earlier, legislative efforts surrounding cryptocurrency regulation faced delays after the CLARITY Act stalled in the Senate, leading industry groups to seek separate tax legislation. [10][14]

Coinpaper reported that the cryptocurrency industry has spent 176 million dollars on the United States midterm elections as the future of the CLARITY Act remains uncertain. [7]