Former House Financial Services Chair Says Anti‑Crypto Bill Unlikely to Pass New Democratic Congress

Former chair of the House Financial Services Committee Patrick McHenry told Unchained’s Bits + Bips podcast on Nov. 9 that the Democratic‑controlled Congress set to take office in January is unlikely to pass any legislation aimed at curbing the cryptocurrency sector. McHenry, who served as the committee’s chair from 2021‑2023, cited the broader political climate and the presence of pro‑crypto lawmakers in both parties as key reasons for his assessment.

Political context after the 2026 midterms

The November 3 midterm elections gave Democrats control of both the House and the Senate, adding at least 54 seats to their Senate majority, according to the election results reported by Unchained. While a few races in Mississippi and Alaska remain uncalled, the overall balance of power is clear: a unified Democratic Congress will convene in January 2027. McHenry argued that this new Congress is “more pro‑crypto than the Congress from six years ago and eight years ago,” suggesting that even progressive members are less inclined to pursue aggressive anti‑crypto measures.

Senator Warren’s role and the likelihood of anti‑crypto bills

Senator Elizabeth Warren, a long‑time critic of the crypto industry, is slated to become chair of the Senate Banking Committee when the new Congress begins. Despite her reputation, McHenry said Warren’s influence on anti‑crypto legislation is limited in the current environment. He noted that while Warren’s progressive agenda still carries weight, it “doesn’t have the same power and import” it did when the Biden administration first took office. The former committee chair also highlighted that other progressive priorities, such as credit‑card interest caps, are gaining bipartisan support, further diluting the focus on crypto‑specific restrictions.

Regulatory gaps and the need for legislative fixes

McHenry pointed to two regulatory shortcomings that he believes need congressional action. First, the Commodity Futures Trading Commission (CFTC) Chair Michael Selig currently lacks statutory authority over spot‑market transactions, where most crypto tokens are bought and sold. McHenry said that granting the CFTC explicit power would be essential for effective market oversight. Second, the Securities and Exchange Commission (SEC) Chair Paul Atkins, according to McHenry, “can go very far” in shaping crypto trading rules, but the agency’s reach is also limited by existing law. Both officials, McHenry argued, would require new legislation to expand their jurisdiction. The former congressman also dismissed the prospect of repealing the