The U.S. midterm elections on Tuesday could shape the next phase of cryptocurrency regulation, with control of Congress at stake and the stalled CLARITY Act facing an uncertain path forward.

All 435 House seats and 35 Senate seats are being contested. The outcome could influence the legislative agenda for the next two years, including negotiations over crypto market-structure legislation and the regulatory framework governing digital assets.

The CLARITY Act faces a new political test

The CLARITY Act, a major priority for the crypto industry, failed to advance in the Senate in September after a 49-50 vote on a procedural motion to proceed.

However, a change in congressional control could shift the bill’s priorities and negotiations….