In a resounding victory that has reshaped the American political landscape, the Republican Party has secured a majority in the House of Representatives, completing a trifecta of successes in the 2024 elections that saw Donald Trump win a second term as President. The GOP’s triumph in the House opens the door for the passage of comprehensive cryptocurrency legislation when Congress convenes next year, cementing the party’s dominance for at least the next two years.
Republicans Prevail in Key Battleground Races
The Republicans’ path to victory in the House was paved by hard-fought wins in several pivotal races, most notably Juan Ciscomani’s success in Arizona, which provided the party with the seats needed to clinch the majority. As of press time, Republicans are leading in several other contests and could end up with as many as 222 seats if current trends hold.
The party is poised to lose a few legislators, as Representatives Matt Gaetz, Elise Stefanik, and Mike Waltz have been tapped by Trump for executive branch positions, necessitating their resignation from Congress. Gaetz, whom Trump has said will be his nominee for Attorney General, has already submitted his resignation, effective immediately.
Crypto PACs Play Pivotal Role
The Fairshake Political Action Committee and its affiliated PACs, “Defend Progress” and “Protect American Jobs,” provided financial backing to nearly 60 House and Senate candidates in the 2024 elections, with the vast majority emerging victorious. Fairshake primarily supported candidates in safe districts during the primaries, ensuring that their preferred candidates would prevail in the general election.
Among the few races where Fairshake-backed candidates fell short were in Colorado, where a Republican defeated Democrat Yadira Caraveo, and in California, where a Democrat bested Republican Mike Garcia. However, the PAC scored over 50 victories, perhaps most notably in the Ohio Senate race, where Senator Sherrod Brown was defeated by his Republican challenger, Bernie Moreno, a car salesman and entrepreneur who received $40 million in support from Fairshake.
Paving the Way for Crypto Legislation
Retiring Rep. Patrick McHenry (R-N.C.), who chaired the House Financial Services Committee, spearheaded the passage of the Financial Innovation and Technology for the 21st Century (FIT21) Act, a market structure bill that would have defined how different types of cryptocurrencies should be regulated by U.S. agencies. The House also passed a repeal of the U.S. Securities and Exchange Commission’s Staff Accounting Bulletin 121, a controversial policy dictating how financial institutions should account for any digital assets they hold for customers.
The SAB 121 resolution was adopted by the Senate but later vetoed by President Joe Biden. The FIT21 bill did not receive a vote in the Senate. California Democrat Maxine Waters remains the senior member of the Financial Services Committee, while Republicans must select who will lead their faction on the committee. Representatives Andy Barr (R-Ky.), Frank Lucas (R-Okla.), French Hill (R-Ark.), and Bill Huizenga (R-Mich.) are among the legislators vying for the role.
Waters had been working on a stablecoin bill with the retiring committee chair, Patrick McHenry, for the past several years. It is unclear if this bill will be reintroduced during the lame-duck session later this year or if it will be introduced next year when the new Congress takes power.
The Road Ahead
As the Republican Party prepares to take the reins in the House, the stage is set for a new era of crypto-friendly legislation and oversight. With President Trump secure in the White House for another term and GOP allies like Bernie Moreno joining the ranks of the Senate, the industry may find a more receptive audience in Washington.
However, challenges remain, as Democrats will undoubtedly seek to influence the legislative agenda and regulatory landscape. The coming months will be critical in determining the trajectory of the crypto space and the extent to which the Republican victory translates into tangible progress for the industry.
As the nation looks ahead to the 118th Congress, all eyes will be on the House Financial Services Committee and the newly empowered Republican majority as they navigate the complex and rapidly evolving world of digital assets. The future of crypto in America hangs in the balance, and the decisions made in the halls of power will have far-reaching implications for years to come.
