Washington’s crypto agenda hinges on next week’s midterm elections, according to a new policy note from TD Cowen, shared with Bitcoin Magazine. 

Analyst Jaret Seiberg warned in the note that the probable results could make it difficult for Congress to pass the over the next two years. The bill would set the rules for bitcoin and other digital assets, and the industry has spent $176 million on to shape the outcome. Here are a couple of the results:

A Democratic sweep is the most probable outcome

Prediction markets cited in the report give Democrats a 90% chance of winning the House and a 62% chance of winning the Senate. TD Cowen considers this the most negative scenario for bitcoin and the broader crypto sector. Under it, Sen. Elizabeth Warren would become Senate Banking Committee chair. Seiberg describes her as a who has led opposition to the CLARITY Act, and he expects her to conduct tough oversight of federal regulators.

Warren cannot stop regulators from adopting policies that favor the industry. Seiberg expects President Trump to toward crypto, so he would veto any bill that limits his regulators’ authority. Democrats would lack the votes to override him. As a result, policy changes are expected to focus on , perpetual futures, and .

A split Congress with Republicans holding the Senate

The second scenario keeps Democrats in control of the House while key Senate races stay close enough to break for Republicans. Sen. Tim Scott would keep his Banking Committee gavel. TD Cowen views this outcome as a better result for bitcoin, because Rep. Maxine Waters could trade support for parts of the in exchange for investor protections and action on her other priorities. 

Adverse legislation would be blocked from reaching the president’s desk.

A Republican sweep is the least likely but best outcome for crypto

Kalshi gives Republicans a 10% chance to keep the House and a 35% to keep the Senate. TD Cowen calls this the , though the margins matter. A wider Senate majority would improve the odds that leaders advance the CLARITY Act in 2027 or 2028, and they could attempt a . 

A narrow majority, by contrast, would leave the bill stalled, as Democrats keep pushing ethics provisions that the president opposes. When the Senate , Bitcoin-related stocks tumbled.

For background, the would create federal rules for digital assets. The House passed its version in July 2025 by a 294-134 vote. The Senate Banking Committee approved its own version in May 2026 by a 15-9 vote, with two Democrats joining Republicans.

On the Senate floor, a 49-50 on September 15. Democrats want ethics language that would bar senior officials, including the president, from profiting from crypto ventures. Republicans and industry groups resist those limits. Stablecoin yield is another dispute. Each side says the other is blocking progress, and the bill is stuck.

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