legislation

According to The Information, Nvidia has long lobbied vigorously against proposals to restrict Chinese companies from accessing its latest chips through overseas cloud service providers. However, since the Huang Renxun scandal broke, this lobbying effort seems to have lost influence in Washington.This trend has made it easier for three bills to advance. The MATCH Act will restrict the export of photolithography equipment to China. The Overwatch Act will grant Congress greater authority to oversee the Commerce Department's decisions on approving sales of AI chips to countries like China. The Chip Security Act will require AI chips to have built-in tracking features.The National Defense Authorization Act is expected to pass before the new Congress, led by Democrats, convenes in January. This provides an incentive for Republican leaders to push legislation forward now while they still have a greater say in the final content of the bill.

Analyst qinbafrank published an interpretation of the impact if anti-crypto Senator Elizabeth Warren were to become the chair of the Senate Banking Committee. Warren has consistently advocated for embedding anti-money laundering obligations deeply into wallets, miners, and validators, preventing banks from bringing crypto risks into the traditional lending and borrowing system, and opposing the use of tokenization to circumvent securities laws. Warren is likely to push for a stricter legislative agenda, but she will face significant resistance in actual implementation.The comprehensive tightening of crypto regulation bills will still be limited by the 60-vote filibuster threshold, and even if both chambers pass them, Trump can still exercise veto power. Therefore, hardline proposals lacking significant compromise are unlikely to directly become law. However, Warren could escalate Trump's scrutiny of crypto businesses into ongoing investigations and initiate intensive hearings targeting the SEC, CFTC, and crypto companies. While this does not equate to criminal convictions, it would significantly impact market sentiment.At the administrative regulatory level, for the next two years, the chairs of the SEC and CFTC will still be held by Republicans, who can continue to advance crypto policies within their existing statutory authority (such as the September tokenized stock trading exemption and the recent derivatives framework request for comments). Warren's oversight cannot automatically invalidate these policies, but it may slow down the process or narrow the scope of exemptions. At the same time, she can use her committee powers to obstruct Trump's nominations for regulatory agency commissioners. Analysts conclude that although hearings and investigations will bring greater pressure, the crypto regulatory environment in the next two years is unlikely to be stricter than during the period of full Democratic control from 2023 to 2024.

Crypto journalist Eleanor Terrett posted on the X platform that former House Financial Services Committee Chairman Patrick McHenry stated that the cryptocurrency industry missed the best opportunity to promote market structure legislation and establish a regulatory framework; he also admitted that he bears some responsibility for this.

Galaxy Research Director Alex Thorn stated that after the Democratic Party won both houses of the U.S. Congress, significant progress in key digital asset legislation is still expected to be difficult, and the leadership of congressional committees will also change. He mentioned that Elizabeth Warren may become the chair of the Senate Banking Committee, while Maxine Waters is expected to regain control of the House Financial Services Committee.Several Republican lawmakers who support the crypto industry were defeated, but the pro-crypto camp did not suffer a complete loss. According to Stand With Crypto, 19 pro-crypto senators and 226 pro-crypto representatives have been elected. Tracking by Molly White shows that in 12 highly competitive elections, the side supported by crypto and AI political action committees lost 9, but won all in the safer 40 elections.Reports indicate that House Democrats are discussing expanding Waters' previously proposed "Crypto Investor Consumer Rights Act" into a broader crypto market structure bill. Thorn reiterated that no substantial progress is expected in Congress on key digital asset legislation. In the absence of legislation, the SEC, CFTC, and banking regulators have clarified crypto rules within their existing statutory authority, and the Trump administration still has two years to continue advancing related work.

According to Bloomberg, the Democratic Party in the United States will leverage the oversight powers of relevant committees in the House of Representatives and the Senate over the next two years to exert pressure on the Trump administration in five key areas, focusing on government investigations, fiscal budgets, Iran policy, artificial intelligence regulation, and cryptocurrency legislation. In terms of cryptocurrency, the Democrats' previous efforts to establish a regulatory framework for the crypto market have stalled, primarily due to a lack of consensus between senators and the White House on ethical standards related to political figures' crypto businesses.This provision aims to limit potential conflicts of interest arising from Trump's personal cryptocurrency business, making the legislative prospects for crypto market regulation similar to the CLARITY Act even more uncertain. In the House of Representatives, Maxine Waters is expected to serve as the chair of the Financial Services Committee, but her long-held position is challenged by Sean Casten; in the Senate, Elizabeth Warren will take on the role of chair of the Banking Committee, where she has long held a critical stance on cryptocurrency, and Sherrod Brown will also return to the Senate.Additionally, regarding AI regulation, the Democrats plan to intensify investigations into AI companies and their CEOs, focusing on data center construction, risks associated with advanced AI models, and the technology's impact on the job market. On Iran policy, the Democrats may use defense budgets, congressional investigations, and war powers resolutions to check the Trump administration.

Fundstrat Managing Partner Tom Lee stated in an interview with CNBC that if everyone starts using tokens, computing power will become scarce, prices will rise, and then bottleneck issues will be discussed. He believes that many states will welcome this investment, and over time, AI trading remains very vibrant, with the community indeed hoping for capital inflow, but on their own terms.Tom Lee also mentioned that cryptocurrencies are rising because Democrats are now pushing for cryptocurrency legislation, whereas they opposed it before the midterm elections, and now they genuinely hope to pass relevant legislation.

On November 3, the National Development and Reform Commission held a series of press conferences on advancing the "14th Five-Year Plan," introducing information on cultivating and strengthening new driving forces. Wang Ruomeng, Deputy Director of the Department of Innovation and High Technology Development of the National Development and Reform Commission, stated that there is a broad consensus in society on the coexistence of opportunities and risks in artificial intelligence. During the "14th Five-Year Plan" period, development and security will be coordinated, with security integrated throughout the research, application, and governance of artificial intelligence.Wang Ruomeng emphasized four key areas of work. First, improve the governance rule system, accelerate the promotion of foundational and comprehensive legislation for artificial intelligence, enhance legislation to protect common elements such as data, computing power, and algorithms, as well as to regulate key application scenarios, establish safety standards and ethical guidelines covering the entire lifecycle, and conduct periodic assessments of the implementation of these systems. Second, optimize the regulatory environment, reasonably set a transition period for regulatory policies, provide compliance guidance for applications across different industries, support the establishment of regulatory sandboxes for artificial intelligence in various fields, and improve the management mechanisms for application, testing, use, and exit.Third, clarify the collaborative governance responsibilities of government departments, industry organizations, enterprises, and the public, promote developers and operators to strengthen risk management awareness, timely disclose safety risks, and proactively report safety incidents and vulnerability information. Fourth, address the impact of artificial intelligence on society, pay attention to changes in employment structure, promote the inclusion of new professions such as model trainers and data annotators into the national occupational classification system, and strengthen monitoring and early warning of employment replacement risks; enhance traceability capabilities for issues such as algorithmic discrimination, deep forgery, and privacy breaches, while also strengthening guidance and intervention to prevent addiction and emotional dependence.

The U.S. Digital Chamber urges Congress to pass a special bill before the recess, granting the CFTC regulatory authority over cryptocurrency exchanges and strengthening customer fund segregation. Lummis stated that the Clarity Act could provide legal protection for freezing suspicious transactions.

According to The Block, as the U.S. midterm elections approach, the digital asset industry may face changes in the congressional political landscape. Over the past two years, the Republican-led Congress passed the stablecoin bill GENIUS Act and advanced the broader Clarity Act; the latter passed the House in 2025 but stalled in the Senate due to controversies over stablecoin rewards and ethical issues raised by former President Trump's crypto wealth. Prediction market Kalshi shows that the probability of the Democrats winning the Senate and the House is 64% and 90%, respectively.The chair of congressional committees holds the power to set the agenda. If the Democrats regain the Senate, Elizabeth Warren will become the chair of the Senate Banking Committee. Ron Hammond, head of policy and advocacy at Wintermute, expects that she will actively use subpoena power and may focus on scrutinizing the Office of the Comptroller of the Currency's approvals of new bank charters for Ripple, Coinbase, and World Liberty Financial, which is supported by the Trump family.The election situation in Ohio is also under scrutiny, with former Senate Banking Committee chair Sherrod Brown facing pro-crypto Republican Jon Husted. Fairshake PAC has pledged $30 million to support Husted. Hammond stated that if Brown wins, he may become the chair of the Senate Agriculture Committee, which could potentially shelve related crypto legislation. In the House Financial Services Committee, regardless of whether Maxine Waters, Sean Casten, or Bill Foster leads, the Clarity Act is unlikely to advance. Lindsay Fraser, chief policy officer of the Blockchain Association, stated that while congressional control may change, the demand for clear crypto regulations will not.

The Blockchain Association stated that it has sent a letter to the leadership of both the House and Senate, urging Congress to advance prudent, bipartisan digital asset tax legislation, and launched TaxClarityforAmerica.com for the public to understand the principles, view congressional progress, and contact legislators.The association noted that approximately 67 million Americans hold and use digital assets, but the current tax system is outdated, leading to uncertainty for taxpayers, excessive compliance burdens, and forcing innovation to move overseas.Its "Digital Asset Tax Principles" include: a meaningful small exemption; taxation of mining and staking rewards as newly created property upon disposal; reporting arrangements that protect taxpayer privacy; tax compliance based on economic substance rather than technical form; and wash sale rules that do not penalize everyday activities while preventing abuse.The association also stated that the House Ways and Means Committee had previously advanced legislation related to digital asset taxation, and Senator Steve Daines has also introduced a Senate version. Congress is in recess until after the elections on November 3, and there remains a legislative window during the short session.

According to Cointelegraph, the Swedish central bank (Riksbank) recently submitted a proposal to the parliamentary finance committee, urging lawmakers to initiate legislative preparations for a potential central bank digital currency—Digital Krona.

The Swedish central bank (Riksbank) has suggested that lawmakers prepare relevant legislation for the potential launch of a digital krona, citing reasons including the European Central Bank (ECB) advancing the digital euro and the increasing use of foreign currency stablecoins.In a letter, the bank stated that the ECB plans to conduct a pilot for the digital euro in 2027 and may launch it to the public in 2029. The Swedish central bank pointed out that if the payment system lacks a digital version of the national currency, its competitiveness may be affected. The bank believes that foreign currency stablecoins, such as those pegged to the US dollar, are widely used for payments within Sweden, which may put pressure on the use of the Swedish krona, but short-term risks are limited. The Swedish central bank estimates that the launch of a digital krona will take at least five years, not including the time required for legislative changes.

Cryptocurrency media Watcher Guru reported that Australia has proposed legislation requiring the reporting of cryptocurrency transactions and the initiation of international tax information sharing.According to the bill, cryptocurrency platforms will be required to report transactions involving Australian residents to tax authorities starting from July 2027.

According to The Block, there has been another personnel change at the White House regarding digital asset regulation, as Patrick Witt has concluded his term as the White House Chief Crypto Advisor. A White House official stated in an email to The Block on Wednesday that Witt's "detail has expired" and expressed gratitude for his work during the Trump administration, wishing him success in the future. Previously, Crypto In America reporter Eleanor Terrett reported that Witt was an employee of the Department of Defense and held a temporary position on the White House Crypto Council.Witt, in his role as Executive Director of the President's Advisory Council on Digital Assets, led the Washington effort to push for the broad crypto legislation known as the Clarity Act. The House version of the bill was passed over a year ago, after which he was responsible for coordinating negotiations in the Senate. However, the Senate version faces multiple obstacles, including disagreements between the banking sector and the crypto industry on the treatment of stablecoin rewards, as well as how to address the conflicts of interest arising from President Trump's substantial crypto assets. The latter became a major reason why the bill failed to pass its first procedural vote last month, as Democrats were concerned that the relevant provisions would not be enforceable, since decisions on whether to take enforcement action against the president would be made by the Department of Justice rather than the states.Witt is the third high-level crypto official to leave the White House. David Sacks, who was in charge of crypto and artificial intelligence affairs, departed in March, stating that his 130-day term as a special government employee had ended; Witt's deputy director, Harry Jung, also left in July.

Bitcoin News posted on platform X stating that the Congressional Research Service pointed out in a new report that since 2017, with changes in presidential administrations, federal regulators have repeatedly changed their stance on whether banks can engage in cryptocurrency activities.The report states that Congress could clarify through legislation to explicitly allow or restrict specific activities to reduce the frequent adjustments in regulatory positions. The report mentions the CLARITY Act: the version passed by the House of Representatives would allow banks to use digital assets or blockchain for activities already permitted by current law; the version reported by the Senate committee would explicitly allow 11 types of cryptocurrency activities, including allowing banks to underwrite and trade digital assets more broadly.

U.S. SEC Chairman Paul Atkins stated that decisive action will be taken to provide regulatory clarity for American investors and entrepreneurs, regardless of legislation, and said "stay tuned."Previously, the CLARITY Act faced obstacles in advancing in the U.S. Senate, and CFTC Chairman Michael S. Selig also stated that existing statutory authority will be used to continue advancing the formulation of cryptocurrency asset regulatory rules.

Galaxy Digital CEO Mike Novogratz stated: If the Clarity Act fails to advance in the Senate vote on Tuesday, the United States may not achieve cryptocurrency legislation for a long time, or possibly never.Novogratz warned: Further delays may force more of the cryptocurrency industry offshore.