This week, Bitcoin (BTC) surged in the wake of the U.S. midterm elections, only to tumble heading into the weekend. Democrats won majorities in both the House and the Senate, handing Republicans a heavy defeat. U.S. crude oil futures fell on expectations that the Trump administration would face mounting pressure to end the fighting with Iran. That eased inflation concerns and pushed U.S. interest rates lower, and buying on hopes of looser financial conditions lifted the crypto market.

At the same time, the Democratic victory also raised fears of tighter crypto regulation. Reports that Democrats had begun considering legislation to expand the powers of the U.S. Securities and Exchange…