Next Week’s Midterms Could Stall the CLARITY Act and Test Crypto’s Political Clout: TD Cowen

The CLARITY Act is one of the main federal crypto bills now moving through Washington, and midterm results can change which party has the leverage to move it forward. TD Cowen’s note places the bill inside a broader crypto policy push that is being watched closely by Congress and industry groups. Next week’s elections matter because they can reshape the legislative environment around digital assets before the bill gets another chance to move.

If Democrats gain more seats, lawmakers may push for tighter oversight language around digital assets rather than a faster path for industry-backed market-structure rules. For crypto firms, that means the rules they face could become more demanding before the CLARITY Act reaches any final form. Builders and lobbyists will be watching for whether the next Congress is friendlier to industry priorities or more focused on regulation first.

The stake here is not just one bill, but who gets to define the first broad federal framework for digital assets in the United States. A stronger Democratic position in Congress can shift the debate toward supervision and consumer protection, while the industry is trying to preserve room for token trading and platform growth. That tension sits at the center of crypto’s push for clearer rules: the same clarity can expand market access or lock in heavier oversight.

What is still unknown is how the midterm results will change the committee math and whether the CLARITY Act keeps moving in its current form. The deciding facts will be the size of any Democratic gains, who controls the relevant committees, and whether the bill keeps enough support to advance in the next Congress. Until those seats are decided, the outlook for digital-asset legislation remains unsettled.