Why a Younger Congress Could Be Good News for Crypto
A Democratic takeover of Congress has raised concerns for the crypto industry, but Bitwise Chief Investment Officer Matt Hougan argues that the changing demographics of lawmakers matter more for the sector's future.
The election results have put Democrats in charge of both chambers of Congress, a development that has worried many in the crypto industry.
Elizabeth Warren is poised to lead the Senate Banking Committee, a position she has used to oppose digital assets in the past.
Hougan, however, sees the changing age of lawmakers as a more significant factor for the industry's long-term prospects.
More Pro-Crypto Senators
The incoming Senate actually contains more members who support crypto than the outgoing one, according to the lobbying group Stand With Crypto.
The group reports 51 pro-crypto senators in the new Congress, compared with 52 in the previous one.
The more interesting change is the age of the lawmakers entering Congress.
Incoming senators are, on average, 14 years younger than those leaving, with the number of senators under 50 nearly doubling from eight to 15.
The new House also includes at least 94 Gen Z and Millennial members, a sharp increase from the previous Congress.
Generational Shift
Younger generations have shown a greater interest in crypto, with a Charles Schwab survey finding that 33% of Millennials own digital assets compared to just 8% of Boomers.
Hougan believes that as these younger, more tech-comfortable generations age and take leadership positions, crypto will find more support across Congress regardless of party lines.
He points to Texas senator James Talarico as an example, noting that at 37, he will become the youngest senator when he takes office in January.
Talarico has received an A rating from Stand With Crypto and voted twice in the Texas legislature to establish a strategic bitcoin reserve.
Democrats Renew Push
The road ahead is not expected to be smooth, with Hougan predicting investigations into Trump-linked crypto projects like Trumpcoin and World Liberty Financial.
He also anticipates potential risks for prediction markets and expects market conditions to remain bumpy over the coming weeks and possibly months.
House Democrats have reportedly begun discussing a broader crypto market structure bill that could give the SEC more oversight and introduce tougher rules for digital asset exchanges.
The discussions center on expanding Rep. Maxine Waters’ Crypto Investor and Consumer Bill of Rights, a 2025 amendment to the CLARITY Act.
The proposal could include giving the SEC a bigger role in market oversight while reducing the CFTC’s authority, along with stricter custody requirements and monthly proof-of-reserve checks.
Democrats are also considering measures such as SIPC-like protection for customer assets, round-the-clock support, and ethics rules targeting crypto activities by federal officials.
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