Bloomberg: Democrats taking control of Congress may raise the threshold for crypto legislation, and Trump-related businesses face stricter scrutiny.

BlockBeats news, November 8 - According to Bloomberg, as Democrats prepare to take control of the U.S. Congress, the political advantages the crypto industry previously enjoyed in Washington are facing a turning point. The industry may encounter stricter rules and more intensive scrutiny of its relationship with Trump; comprehensive crypto legislation will also be harder to advance on terms favored by the industry.

The CLARITY Act failed to make progress in the Senate in September, Trump's crypto business became a focal point of controversy, and disagreements over stablecoin rewards, investor protection, and banking competition also led negotiations into a deadlock. Democrats have signaled plans to demand stricter ethics restrictions, stronger consumer protections, and an expanded role for the SEC in digital asset regulation. However, if the industry can build bipartisan support, these adjustments could also form a new legislative path.

On congressional oversight, Maxine Waters is expected to wield greater influence on the House Financial Services Committee, and Warren is expected to lead the Senate Banking Committee. Democratic lawmakers have previously requested information about businesses related to Trump and his family. Trump has consistently denied that his business interests conflict with his presidential duties.

Adam Minehardt, Chief Policy Officer of the Hyperliquid Policy Center, expects the industry to adopt a defensive posture at least initially while adapting to the new leadership, and committee chairs with greater power will advance substantive oversight agendas. Austin Campbell, an adjunct professor at NYU Stern School of Business, noted that many important figures in the crypto industry have aligned with the Trump family and may now begin to face the corresponding consequences.

But existing policy achievements are not easily reversed. Repealing the federal stablecoin law would require new legislation, and the SEC and CFTC can still continue to formulate rules during Trump's term. Tyler Gellasch, CEO of the Healthy Markets Association, noted that Congress could try to use its appropriations power to limit regulators' resources on specific policy matters, and could also investigate regulatory decisions and their relationship with politically favored companies.

Security issues may also affect the direction of regulation. The report said that Binance previously suffered $6.3 billion in stolen losses and has since replenished the stolen crypto assets through company funds and two insurance funds. Peter Atwater, an adjunct professor of economics at William & Mary, emphasized that repeated hacking incidents will have an impact, and attention is on whether this incident will prompt Democrats to refocus regulatory priorities on safety and soundness.

Industry advocates, meanwhile, have begun to emphasize bipartisan cooperation. Ji Kim, CEO of the Crypto Council for Innovation, said: "Digital assets have always had a bipartisan support base, and we are ready to work with both newly elected and reelected lawmakers from both parties."