The crypto industry is bracing for a more hostile regulatory environment as key Democratic lawmakers potentially gain influential positions in the next Congress. Sherrod Brown, who is running for his Ohio Senate seat, and Rep. Sean Casten, vying for the top Democratic slot on the House Banking panel, are seen as tough critics of Wall Street and crypto. Their potential victories could bring intense scrutiny and subpoena powers to the crypto and banking sectors under a Democratic majority.
Brown, who previously blocked stablecoin legislation, might not lead the Senate Banking Committee but could head a subcommittee. Casten, who has an 'F' rating from Stand With Crypto, may also lead a House Financial Services subcommittee. Businesses tied to President Donald Trump, including crypto firms, are preparing for possible congressional probes.
Senate Democrats face a seniority conundrum with Brown’s possible return, as Sen. Elizabeth Warren retains seniority over him. In the House, Rep. Maxine Waters faces a challenge from Casten, though some Democrats prefer her as a known quantity. The outcome will shape the regulatory landscape for crypto and banking in the next Congress.