Democratic victory in Congress: Trump's crypto rules remain in place

The vote changes, the rules remain. The Democratic victory in the US midterm elections complicates the crypto sector's legislative ambitions. However, it does not erase either the federal law on stablecoins or the decree creating the strategic bitcoin reserve. After the change in Congress, it is necessary to distinguish the projects still under negotiation from the measures already adopted.

The new majority will take office in January 2027. Until then, the Trump administration retains its powers and regulators continue their work within existing laws.

Key Points

The GENIUS Act remains in force despite the Democratic victory in Congress.

The strategic bitcoin reserve does not disappear with the change of majority.

The SEC, CFTC and other federal authorities retain regulatory authority.

Congress can investigate, legislate and regulate these devices, without automatically canceling them.

Stablecoins: The GENIUS Act keeps its calendar

Signed into law on July 18, 2025, the GENIUS Act establishes a federal framework for payment stablecoins. The electoral result does not suspend its provisions or the preparation of its rules of application.

The law provides for entry into application on the first of two deadlines: January 18, 2027, i.e. eighteen months after its promulgation, or 120 days after the publication of the final rules provided for by the text. The change of majority does not modify this formula.

Democrats can nevertheless propose amendments, monitor the work of the authorities and demand accountability for authorizations granted to businesses. An adopted law is therefore not intangible.

But its modification requires a legislative procedure. If Donald Trump vetoes a text passed by Congress, elected officials must gather two-thirds of the votes in each chamber to overcome it. This requirement concerns overriding the veto, not any amendment to the GENIUS Act.

Bitcoin Reserve and regulators: Continuity under surveillance

The strategic bitcoin reserve is based on another instrument: a presidential decree signed in March 2025. This plans to keep certain BTC definitively confiscated by the authorities, subject in particular to legal restitution obligations. Elections do not revoke this decree.

However, the device does not escape Congress. Parliamentarians can request information on its management, organize hearings and adopt legislation which regulates its operation. It is therefore necessary to distinguish its immediate continuity from a guarantee of sustainability.

For their part, the SEC and the CFTC retain their jurisdiction. The change of parliamentary majority does not automatically replace their leaders and does not cancel the rules already adopted. On the other hand, the Senate has leverage over the nominations subject to its confirmation.