A Democratic Congress leaves the CLARITY Act, beaten 49-50 in September, racing a January 3 deadline as Elizabeth Warren is expected to take over Senate Banking

Democrats won control of both chambers of Congress in Tuesday's midterm elections, The Block reports, and the crypto industry's main market-structure bill is now stalled. On September 15 the Senate failed 49-50 to cut off debate on the CLARITY Act, American Banker reported, short of the 60 votes needed. Republicans Josh Hawley, Susan Collins and Jerry Moran voted no.

The Bitcoin Foundation says the bill has to pass before the new Congress convenes on January 3, 2027, or be reintroduced. Sen. Angela Alsobrooks, one of its negotiators, thinks a deal is still possible before then, but she doubts a Democratic-led Congress would make it a priority afterward, the foundation reports. TD Cowen's Jaret Seiberg expects a stall of about two years, citing possible investigations into Trump's crypto ties.

CoinCentral reports that Sen. Elizabeth Warren is likely to chair the Senate Banking Committee, and that Collins, one of the Republicans who opposed advancing the bill, lost her Maine seat to Troy Jackson. Democrats in the talks had sought tighter rules on illicit finance, limits on officials' role in the industry and more consumer protections. Maylea Ma of 1inch told CoinCentral that real movement may come from the SEC, CFTC and Treasury rather than Congress. Some races were still being counted when these reports were published.