tl;dr
The Democrats' midterm gains are not all bad news for crypto, and a week of hacks is offset by real progress in the tokenisation revolution.
Market Snap
Market Wrap – It’s all about politics
Let me remind you once more that the CCC remains fiercely apolitical – our only concern is for the ever-increasing adoption of cryptos and blockchain technology. However, politicians are instrumental in promoting cryptos or obstructing them, so we cannot ignore them.
In the US there has been a clear partisan dividing line. The CCC did not seek it, but it is still there, though times are changing. In the UK there is no such dividing line – all the main political parties are united in their disdain for the crypto revolution, despite our new Prime Minister, Andy Burnham, once pretending otherwise. The EU is home to MiCA (Markets in Crypto-Assets) which remains a leading standard-bearer for crypto regulation, suggesting that politics does not come into it at all on the continent. Bravo the EU!
The dramatic gains made by the Democratic Party in the midterms on Tuesday last have reinforced fears around the purported AI bubble and are predicted to make life more difficult for crypto development.
I am not so sure.
Three newly elected Democratic Senators have pro-crypto credentials.
James Talarico, Texas, voted in 2025 as a state representative in favour of establishing the state’s Strategic Bitcoin Reserve. He is also on record supporting clear cryptocurrency rules that provide investor protection whilst allowing innovation, a position diametrically opposed to that of the naysayers as embodied by Senator Elizabeth Warren and her anti-freedom band of refuseniks.
Troy Jackson, Maine, has also made clear his opposition to the immoral and illegal Operation Chokepoint 2.0 as well as supporting clearer definition of the SEC’s and CFTC’s responsibilities. Stand With Crypto ranks Troy highly in its assessment of which Senators are supportive.
Chris Pappas, New Hampshire, voted for both GENIUS and CLARITY whilst as a Representative. His elevation to the Senate adds to the number of Senators who believe in freedom, liberty, and privacy.
On the downside, we saw the return of Sherrod Brown in Ohio. Brown had been a key lieutenant in Warren’s campaign to deny ordinary folk many of the liberties that she enjoys, until he was ejected just two short years ago.
Further stock market ructions this week won’t help our cause in the short term but will prove to be a minor blip in the scheme of things when we look back with hindsight.
Curious Cryptos’ Commentary – Hacks and tokenisation
Away from politics, we had some other bad news events. The fallout of the mammoth Binance hack was accompanied by hacks of Polymarket, Mercado Bitcoin, and BTCPay Server.
These incidents are always painful (especially so in the Binance instance) but we must remember that TradFi fraud and theft happens multiple times daily. The opportunities to rectify crypto fraud are far greater than in TradFi, whose losses are simply paid for by customers i.e. you, me, and everyone else.
The launch of DTCC’s Tokenisation Service is a key signpost of the direction of travel for all investments. Greece, Nigeria, and Switzerland add to the weight of that argument, leaving the UK floundering in bureaucratic incompetence.