Simultaneously with the 2022 US Midterm Election (Nov 8), BeInCrypto examines what a Republican or Democrat victory will mean for the crypto market.
All 435 seats in the House of Representatives will be contested during this mid-term year. In the Senate, only 35 of the 100 seats available will be voted on.
Currently, the House of Representatives has a narrow majority of 8 seats in favor of the Democrats. Meanwhile, the Senate is effectively divided along party lines, with the Democrats only narrowly in control. Democrats must fight to keep both, as Republicans believe, to take control of both houses.
Republican or Democrat: Who Wins the US Midterm Election 2022?
In the lead-up to the current election, voters are trying to predict whether Democrats or Republicans will come out on top.
The Democrats seem to have an early lead. Still, Republicans are looking increasingly strong as the election heats up. Key issues of concern to US voters include inflation, which remains extremely high at 8.2%.
Democrats have tried to build political capital out of reproductive rights in this election. But the issue did not gain much traction among voters as the economic pressure has worsened.
Part of the problem for Democrats is that President Joe Biden is not particularly popular. Biden’s current rating is 40%, which is a problem for the broader party as it seeks to seize power.
According to pollsters, it now looks more than likely that Biden will lose the House of Representatives. Democrats can do better in the Senate and maintain control of the Upper House.
If Democrats lose control of one or both houses, it will make Biden’s remaining term more difficult. It can also slow down the movement of the law or stop it all at once.
The Impact of a Democratic Victory on Crypto
Like many things in politics, the Democrats’ stance on crypto is complicated. Within the Democrat camp are crypto-positive representatives such as Richie Torres and Jim Himes. This optical party also has highly crypto-critical senators such as Elizabeth Warren and Sherrod Brown.
Senior party member and former presidential candidate Elizabeth Warren has been a particularly vocal opponent of crypto. In May, Warren questioned Fidelity’s decision to allow pension holders to allocate part of their pension provision in crypto. At the time, Warren said, “Bitcoin’s volatility is only heightened by the sensitivity of a few influential people to the whims.”
Warren represents a staunch streak of crypto skeptics within the Democrat Party. But more broadly, a more nuanced and complex approach is taking shape.
In March, US President Joe Biden issued an executive order on crypto which, in general terms, was positive at the time. In September, that framework was brought forward, with a focus on consumer protection.
The framework also raised concerns that it could jeopardize further blockchain innovation in the banking sector.
How the crypto market might react if Republicans win
Republicans are generally more pro-crypto than their Democrat rivals. This does not mean that the Republican victory of the US Midterm Election 2022 will lead to more crypto-positive legislation anytime soon. A more likely outcome would be a legislative deadlock for the remainder of Biden’s term.
The Red State of Texas has become a major center of crypto activity and mining in recent years. Republicans have pushed back SEC overreach in the crypto market.
Patrick McHenry and Bill Huizenga expressed concern. In April, he said the Securities and Exchange Commission (SEC) attempted to further expand his reach in crypto.
In an open letter to SEC chief Gary Gensler, the pair said, “We are particularly concerned that the proposed rules would be interpreted as empowering the SEC beyond its current statutory authority to regulate market participants in the digital asset ecosystem, including decentralized finance. can be done to expand the area. DeFi).”
Cross-party consensus exists
While political parties try to build political capital out of their differences, some unity has been found on the subject. Earlier this year, a cross-party bill from Senators Cynthia Loomis (R-Wyo) and Kirsten Gillibrand (DN.Y.) attempted to balance the needs of both consumer protection and financial innovation.
Crypto supporters will be hoping that no matter who wins the 2022 US midterm election, such sensible and measured resolutions can find a way to pass.
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