What the 2026 U.S. Midterms Could Mean for Crypto

However polarizing it was, Donald Trump’s 2024 victory in the U.S. presidential election represented a promising opportunity for crypto. Trump had accused the Biden administration of “wag[ing] war on crypto” and vowed to be the “pro-bitcoin president that America needs,” so the implications of a second Trump presidency felt bullish. The market reaction was immediate: Bitcoin rose 8.99% as Trump's victory became clear, breaking its previous all-time high and kicking off a rally that would ultimately take the price above $100,000. Beyond Trump's campaign rhetoric, the move reflected expectations of a significant shift in the industry's prospects, fueled by a more favorable political environment and growing institutional adoption.

An important part of this optimism was the likelihood of a more accommodating Congress. Republican control of both the House and Senate was seen as a positive sign that digital asset legislation could finally advance, providing greater regulatory clarity for exchanges, issuers, and industry participants as a whole. Early developments suggested that this hope was well-founded: Congress repealed the IRS DeFi broker rule and passed the GENIUS Act, while the Senate confirmed crypto-friendly regulators such as Paul Atkins and Michael Selig to lead the SEC and CFTC, respectively.