TD Cowen Warns Democratic Congress Would Sink CLARITY Act for Two Years

Analysts at TD Cowen warn that a Democratic sweep of the U.S. Congress would likely kill the CLARITY Act for the next two years and sour the political climate for crypto.

In an election-day note, Washington analyst Jaret Seiberg wrote that a Democratic-controlled Congress would likely investigate former President Trump’s crypto ties, creating a hostile environment. He concluded this makes passage of the market structure bill, which failed a Senate cloture vote in September, unlikely in the next Congress.

The analysis hinges on Senate control, which would elevate Senator Elizabeth Warren to chair the Banking Committee and could block Trump’s nominees to key financial agencies like the SEC and CFTC. Seiberg noted that crypto’s influence may further shrink if Senator Sherrod Brown wins his Ohio race.

While prediction markets heavily favor a Democratic victory, Seiberg highlighted the lame-duck session as a final window for the CLARITY Act. Should it fail then, he doubts a Democratic Congress would prioritize it, potentially shifting the regulatory focus to agency-level actions.