The Democratic sweep of Congress makes legislation on crypto market structure, including the CLARITY Act, unlikely to pass over the next two years. TD Cowen analyst Jaret Seiberg said the outcome hurts the industry and weakens its political influence after more than $170 million in super PAC spending failed to deliver the desired Congress and Sherrod Brown returned to the Senate. The CLARITY Act, which passed the House in July 2025 but failed a Senate cloture vote 49-50 in September, is set to die on January 3 unless it is revived during the lame-duck session. Seiberg nevertheless expects the SEC and CFTC to remain active on crypto, prediction markets and perpetual futures without congressional action. He also anticipates heightened macroeconomic risks involving the debt ceiling, a potential government shutdown or default standoff in 2027, and continued political pressure on the Federal Reserve.
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