U.S. midterm election: What's at stake for crypto, CLARITY Act, related stocks?
The U.S. midterm elections on Tuesday could shape the next phase of cryptocurrency regulation, as control of Congress is at stake and the CLARITY Act remains stalled.All 435 House seats and 35 Senate seats are up for election. The outcome could affect what Congress focuses on over the next two years, including efforts to set clearer rules for crypto markets and digital assets.The CLARITY Act faces a new political testThe CLARITY Act is one of the crypto industry's key priorities. However, the bill failed to move forward in the Senate in September after a 49-50 vote on a procedural motion.The election results could impact its chances of moving ahead. If Republicans keep control of Congress, the bill could remain on the agenda. A Democratic takeover of either chamber or a divided Congress could lead to more talks and delays.Still, neither outcome guarantees that the bill will pass or fail. It would need support from both parties to reach the 60 votes required in the Senate.The crypto industry's political involvement has also grown, with the sector spending roughly $176M across more than 100 congressional races this election cycle, according to Reuters.Bitcoin's post-midterm history draws attentionBitcoin has historically gained ground over the 12 months following the last three U.S. midterm elections. The Coin Bureau noted on X that Bitcoin gained 24.5%, 44.9%, and 92.3% in the 12 months following the 2014, 2018, and 2022 midterms, respectively.However, three examples are not enough to show a clear pattern or suggest that Bitcoin will rise again after this election.The immediate market backdrop remains more cautious. Bitcoin traded near $77,564, up around 1% on the day, recovering after a roughly 3% weekly decline. Ethereum gained nearly 2%, while Solana advanced 1.43% and XRP rose 2.47%, based on the latest market snapshot.The Crypto Fear & Greed Index stood at 26, indicating fear among investors. It was at 37 a day earlier, 48 a week ago, and 65 a month ago.CoinGlass data showed about $403.11M in crypto liquidations over 24 hours, affecting 97,442 traders. Long positions accounted for $331.69M, or 82.3% of the total, proposing that leveraged bullish bets bore the brunt of the market's recent weakness.What the outcome could mean for crypto investorsThe election could also impact publicly traded companies with exposure to digital assets.Coinbase , Circle Internet Group , Robinhood Markets , and Bullish could be impacted by changes to U.S. rules for crypto exchanges, trading platforms, and stablecoins.Strategy , Hut 8 , MARA Holdings , and CleanSpark , Galaxy Digital have broader exposure to digital assets, while Bitmine Immersion Technologies has exposure to Ethereum through its treasury and staking activities.For Bitcoin, Ethereum, and crypto-related stocks, the election’s longer-term significance may depend less on the immediate market reaction and more on whether the next Congress can revive the CLARITY Act and deliver a durable regulatory framework over the next two years.Note: Historical performance does not guarantee future results, and Bitcoin’s price may remain sensitive to broader market conditions, investor sentiment, and regulatory developments.Content provided by Seeking Alpha is intended for information purposes only, and that Seeking Alpha does not offer any personalist investment advice and is not a licensed securities dealer, broker, US investment adviser or investment bank.