Crypto’s $40M gamble backfires as Warren set to lead Senate Banking

Sen. Elizabeth Warren is poised to become a ranking member of the Senate Banking Committee next year. With Sen. Sherrod Brown exiting and Sen. Mark Warner opting to remain on the Senate Intelligence Committee, Warren’s leadership on banking looks inevitable.

The irony here is that the crypto industry spent more than $40 million to oppose Brown, only to see him replaced by her. Warren is well known for her critical stance on the industry. She won her reelection to a fourth term in the US Senate by defeating pro-crypto candidate, John Deaton.

Warren to take charge of Senate Banking

According to reports, Mark Warner confirmed he’ll stay as the top Democrat on the Intelligence Committee. He will maintain his oversight of national security issues instead of taking a role in Banking. With Elizabeth Warren’s leadership on banking and Warner’s focus on security, the Senate Banking Committee is expected to see a major shift. This could be particularly targeted on regulatory issues affecting tech and crypto.

President-elect Donald Trump’s rumored appointment of Sen. Marco Rubio as Secretary of State could see Warner step up as the Democratic Vice Chair on the Intelligence Committee as the Senate shifts to GOP control in 2025.

As the roles shift, Warner has already expressed his commitment to tackling complex security threats, from AI to cyber hacking. Warren’s likely leadership signals a challenging path ahead for the crypto sector.

Warren’s big reelection win

Senator Elizabeth Warren won her reelection by defeating Republican challenger John Deaton with 74% of the vote. The race highlighted her stance on crypto-linked regulation, a key issue in the contest. Deaton has been a vocal critic of Warren’s policies and a key figure in the long-running Ripple vs US SEC lawsuit.

Deaton had presented XRP holders in the SEC lawsuit, revealing major things in the case. He received a huge crypto industry support. This includes a $1 million donation from Ripple Labs’ super PAC. However, Warren remained firm on her stance that crypto platforms must follow the same regulations as traditional financial institutions, like banks and stockbrokers. 

On the other hand, the pro-crypto lawyer pushed for crypto’s potential to empower the unbanked. He had argued that Warren’s regulatory proposals could hinder the self-custody of Bitcoin while favoring banks’ custody services.

The crypto industry recorded a massive bullish rally as Trump got over the majority line. Bitcoin price increased by around 20% in the last 7 days pushing it to hit $90,000 on the chart. The cumulative digital assets market cap went on to breach the $3 trillion mark with major altcoins printed green indexes.