The Clarity Act is likely to remain blocked after the Democrats won the US elections on November 3, 2026. The party won both houses of Congress, changing the outlook for crypto regulation in the United States. In an analysis published on November 6, Galaxy Digital forecasts little progress on major reforms in the sector. Elizabeth Warren and Maxine Waters could notably take over the leadership of strategic financial commissions.
In brief
- Democrats take control of both houses of the US Congress.
- Galaxy Digital anticipates little progress on the Clarity Act and major crypto laws.
- Elizabeth Warren and Maxine Waters are expected to lead two important financial committees.
The Clarity Act loses its chances in Congress
The election result seriously complicates the future of the Clarity Act. The text had already failed in the Senate on September 15 with 49 votes in favor against 50 oppositions. He needed 60 votes to pass this procedural step.
The Republicans then had a majority in both chambers. This will no longer be the case starting in January 2027. Democrats gained seven additional Senate seats in the November 3 elections. They also won a majority in the House of Representatives, ending two years of Republican control of Congress.
Alex Thorn, head of research at Galaxy Digital, does not expect significant progress in major crypto legislation under this new majority. The Clarity Act was intended in particular to clarify the powers of the SEC and the CFTC in the supervision of digital assets.
The House adopted its version of the text in July 2025, with 294 votes in favor against 134. In the Senate, negotiations have long focused on the rewards of stablecoins, the protection of developers and the conflicts of interest of political leaders.
Despite several compromises, no final agreement was reached. The new Democratic majority could choose to take back certain provisions or work on a different project. The current text has not been officially abandoned.
Elizabeth Warren and Maxine Waters regain weight
The change in majority will have consequences for the direction of parliamentary committees. Galaxy believes Elizabeth Warren could chair the Senate Banking Committee. Maxine Waters is expected to return to leadership of the House Financial Services Committee.
These two Democratic officials have been defending stricter supervision of crypto activities for several years. Their return to important positions could change legislative priorities. Galaxy also reports that House Democrats are discussing a plan inspired by the investor protection proposals championed by Maxine Waters in 2025.
It could serve as the basis for new legislation on the structure of the crypto market. The elections also had mixed results for industry-backed candidates. According to the follow-up of researcher Molly White cited by Galaxycandidates backed by crypto and AI funding committees lost nine of twelve competitive elections whose results were known as of November 4.
On the other hand, the forty candidates supported in constituencies considered less contested won their elections. Several digital asset advocates also retained their seats, including Democrats Josh Gottheimer and Ritchie Torres.
The differences between the two parties therefore do not mean that all Democrats oppose crypto. In September, Republicans even included 126 changes requested by Democrats in their latest proposal on the Clarity Act. The compromise was not enough.
Crypto regulation could move forward without the Clarity Act
The likely failure of a new legislative attempt does not mean that American regulations will stand still. Galaxy recalls that the SEC, the CFTC and the banking authorities already have powers allowing them to specify the rules applicable to crypto companies.
The Trump administration can continue this work during the remaining two years of its term. These administrative measures do not, however, replace all the provisions that a federal law could establish.
Congress notably retains an essential role in permanently establishing the powers of regulators and defining the legal obligations of platforms. The new majority will also be able to organize hearings and request documents from companies or public officials.
Donald Trump’s crypto activities are among the files likely to receive more attention. World Liberty Financial, its stablecoin USD1 and the financial links between the presidential family and several foreign investors could be the subject of new investigations.
These possible procedures remain distinct from the adoption of the Clarity Act. Democrats will also have to take into account the position of elected officials favorable to digital assets in their own camp.
For the industry, future discussions could therefore focus more on consumer protection, conflicts of interest and the powers of supervisory authorities.
The Clarity Act has not yet received a new vote date. Meanwhile, Democrats are already preparing investigations into the Trump family’s crypto activities. In Washington, the sector will now have to deal with a Congress less favorable to some of its priorities, without seeing all possibilities for compromise disappear.
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