In a blog post, Karina Rothoff Brix, Country Manager Denmark at Firi, argues that the crypto market isn't doomed even though the Democrats have won a majority in the US Congress at the midterms. She says Donald Trump's influence on a global asset class is being overstated, and points out that regulators SEC and CFTC continue their rulemaking work independently of Congress.
Karina Rothoff Brix, Country Manager in Denmark for Firi, the largest crypto exchange in the Nordics plus Board member at Firi. Educated Master in Law and business administration and MMD. Former head of Copenhagen School of Entrepreneurship at CBS and head of Center for lifelong learning at Danish Technical University. Member of the Danish Innovations Fund investment panel since 2016 and chair since 2025., Karina has worked with tech-scaleups and emerging business models for the last 18 years. This experience and her background in law and business administration is often used when she is writing about crypto and blockchain in the media and in her book from 2021.
The US midterm elections are decided. The Democrats have won a majority in both the Senate and the House of Representatives, and from several quarters the message is that crypto is now facing a rough ride. But is it really that simple? Or is it an oversimplification to claim that one man dictates the entire US stance on a globally driven asset class?
In my view, people are overstating Trump's importance to crypto if they believe he alone drove its growth. Crypto is a global market with millions of users, thousands of companies and investors on every continent. Adoption didn't grow because a single politician backed it. It grew because the technology solves real problems, and because the demand is there.
The election changes the balance of power in Washington. It doesn't change the fundamental forces driving the market.
It's also misleading to think there are no crypto supporters among the Democrats. Ripple CEO Brad Garlinghouse points out that politicians who support digital assets won in both parties. The industry's largest political action committee, Fairshake, won 29 of the 34 races that had been decided by November 4, according to its own tally.
There were losses too, though. In Ohio, crypto-critical Democrat Sherrod Brown won back his Senate seat, even though the industry spent over $60 million trying to prevent it. Crypto, in other words, isn't a partisan issue — and that's exactly the point.
On the legislative front, the CLARITY Act, as is well known, failed in the Senate in September by a vote of 49 to 50. The bill was meant to give the crypto market clear rules and split oversight between the SEC and the CFTC.
The next round of negotiations will now be conducted with lawmakers increasingly siding with the banks and emphasizing consumer protection. Trump also still holds veto power. So new legislation probably isn't coming anytime soon. That's not ideal, but it's not a disaster either.
When it comes to regulation and guidance, including new innovation frameworks, there's actually far more clarity ahead in the coming years. That's driven by the regulators — the SEC and the CFTC — not by Congress. Both agencies continue working tirelessly to turn the vision of "the US as the world's crypto capital" into reality.
Rules set by regulators can of course be rolled back by a future administration. But for the years ahead, the direction is clear, and that gives the industry a foundation to build on.
It's too early to predict the real impact. But so far, markets — including the crypto market — have reacted positively to the result. The Dow Jones rose more than 1,200 points the day after the election. Whether that's because markets generally welcome stability and less uncertainty is hard to say. Many analysts point out that divided power in Washington has historically been good for markets, because it tends to rule out large, sudden policy swings.
Regardless of the election result, the need for clear crypto rules hasn't gone away. Both Democrats and Republicans need to address it. The goal should be legislation that holds up over time and gives investors, companies and consumers certainty for years to come. A law backed by only one party risks being rolled back at the next election. That's why a broad majority is the way forward.
Nothing in this post should be regarded as financial advice. Crypto is a risky investment asset.