Republican Senate control would help enact FIT21 and install pro-crypto agency chiefs, and digital asset reform would likely proceed sooner with both houses unified.
Citi (C) said in a research paper on Wednesday that a Republican sweep in the U.S. election would be best for Coinbase (COIN) and the crypto market, while a Harris win and a split Congress would increase uncertainty for the industry.
"The Trump/Vance ticket has publicly endorsed digital asset reform, Republican control of the Senate would be important for passing bills like FIT21 and confirming pro-crypto agency leaders," analysts led by Peter Christiansen wrote, adding "the pace of digital asset reform would likely move faster with both chambers of Congress aligned."
The article suggested a GOP Senate and Democrat House would still be favorable for Coinbase and crypto markets. The Nov. 5 U.S. election will be followed by Nov. 8 results.
Citi emphasized that numerous anti-crypto Democrats sit on the House Financial Services Subcommittee. But they'd "likely still be outweighed by a combined Democrat and Republican pro-crypto contingent."
The bank said a Harris win and a Republican Congress would be unpredictable for crypto markets since she has yet to outline her crypto policy aims, and a Democrat government would likely maintain many agency heads to avoid Senate confirmation issues.
Citi said a Harris victory and a split Congress would mean the greatest uncertainty for digital assets. It might face Senate confirmation problems, and Coinbase investors may be less optimistic about Senate support for crypto legislation.
