All 435 of the House of Representatives seats will be up for election during this midterm election year. Only 35 of the 100 available seats in the Senate will be up for election. The Democrats now possess a slim 8-seat majority in the House of Representatives, while the Senate is essentially divided along partisan lines, with the Democrats holding a tenuous 8-seat advantage. As a result, the Democrats must battle to keep both, while the Republicans will think they can easily seize control of both chambers.
Democrat or Republican?
Pollsters have been attempting to forecast whether the Democrats or Republicans would win this race in the current election. Early on, the Democrats were thought to have an advantage, but as the election gets closer, the Republicans are starting to seem stronger. Inflation, a major worry for US voters, is still persistently high at 8.2%. (1) The Democrats have used reproductive rights to gain a political advantage this year, but as economic conditions have gotten harsher, voters haven't given the issue any momentum. The fact that the President is not very well-liked is one aspect of the Democrats' issue.
Joe Biden's approval rating is below 40% (2), which is a challenge for the larger party as it tries to maintain control. Pollsters say Biden's loss of the House of Representatives is now quite likely. In the Senate, Democrats are predicted to do better and might keep control of the upper chamber.
Democrats and crypto
The Democrats' position on crypto is complicated, as is the case with many political issues. Representatives who support cryptocurrency, like Ritchie Torres and Jim Himes, are Democrats. Senators who are fiercely anti-crypto, like Elizabeth Warren and Sherrod Brown, are Democrats. Elizabeth Warren, a prominent party member and previous presidential candidate has been a particularly vocal opponent of cryptocurrencies. The move by Fidelity to permit pension holders to put a portion of their pension plan in cryptocurrencies was questioned by Warren in May. (3)
Bitcoin's volatility is worsened by its sensitivity to the whims of only a few influencers, Warren had stated at the time. Warren represents a staunchly anti-crypto wing of the Democratic party, but a more nuanced and sophisticated viewpoint is emerging more broadly. President Biden signed an executive order on cryptocurrencies in March, which was mostly regarded favorably at the time. With a focus on consumer protection, that framework was advanced in September. The framework did spark worries that it would imperil future blockchain developments in the financial industry.
Republicans and crypto
Republicans are often seen to be more crypto-friendly than their Democratic competitors. That doesn't imply that other crypto-positive legislation would quickly pass if the Republicans were to win. For the balance of Biden's term, legislative paralysis would be the more likely outcome. Republicans have resisted SEC overreach in the bitcoin industry, and the red state of Texas has recently emerged as a significant center of cryptocurrency activity and mining.
The middle ground
Although political parties sometimes use their disagreements for electoral gain, there has been some consensus on the issue. A bipartisan measure introduced earlier this year by Senators Cynthia Lummis (R-Wyoming) and Kirsten Gillibrand (D-New York) sought to strike a balance between the requirements of financial innovation and consumer safety. Crypto advocates will hope that such reasonable and moderate initiatives may find a route to passing regardless of who wins the midterm elections.
