LONDON/HONG KONG – Cryptocurrencies briefly dipped on Nov 4 as Democrats won majorities in both the Senate and House in the US midterm elections, a potential blow to an industry that has pushed for faster deregulation for digital assets.

The sector has spent more than US$300 million (S$383 million) backing crypto-friendly Democrats and Republicans in roughly equal measure during the current and previous election cycles, hoping to pass legislation US crypto companies say will put them on a solid legal footing and allow them to thrive.

Bitcoin briefly touched a six-week low before recovering to trade roughly flat by 07.15 GMT (3.15pm Singapore time) at US$78,070. Ether traded at US$2,292, up just 1%.

Bitcoin has fallen by around 41% since…