The US midterm elections took place yesterday. Some of the senators, members of the House of Representatives and many governors are elected. These elections are considered an interim report for the incumbent president. This time, the outcome of the election could have a major impact on the crypto community.
Traditionally, an American president loses this election. After all, he has been in office for two years at this point and faces a reality that rarely allows him to fully implement his campaign promises. Joe Biden has had a particularly tough time this time, after all, the country is groaning under consistently high inflation. But currently, it looks like a clear Republican victory won’t materialize.
Will the Republicans win Congress?
Bad economic data is always the downfall of politicians in the United States, but this time Joe Biden could walk away with a black eye. However, a defeat for the Democrats could prove beneficial for cryptocurrencies. Finally, observers expected full regulation for the regulation of Bitcoin and Co. in the United States before the end of this year.
But the dispute between lobbyists and the many unanswered questions have upset the schedule. Given the open works, experts expect a postponement to 2023 unless a new crypto law is passed as part of a comprehensive package.
Loyal Crypto Supporters
Contrary to expectations, the Republicans apparently did not clearly win the midterm elections. However, if power is split in the second half of President Joe Biden’s office, he will have to come to terms with Congress if he is to continue to push his bill through.
But Republicans are mostly among the staunch supporters of liberalizing crypto. They could push more aggressively for the creation of new crypto laws if they win, allowing the industry to grow and bring financial innovations to market.
Pressure on the SEC?
At the same time, it is now to be expected that politicians will put more pressure on the US Securities and Exchange Commission (SEC) to drop its negative attitude towards cryptocurrencies. In any case, with the takeover of the Senate, the Republicans would clearly gain in influence.
Now, observers are hoping that politicians in Washington will no longer put obstacles in the way of crypto development. In any case, the crypto industry has cautiously distanced itself and not increased its donations in the run-up to the election. Apparently you want to wait for further developments before making further financial commitments.
The industry donated $10.4 million a month when candidates were still in the primaries, but that figure recently dropped to just $0.6 million. In any case, the industry hopes to continue to retain its influence and to be able to contribute its expertise to legislation. The odds would be better under a Republican Congress than they are now.
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