WASHINGTON, D.C. / CryptoWire.AI / – Elizabeth Warren is poised to gain subpoena power over the crypto industry as the likely next chair of the Senate Banking Committee. The Massachusetts Democrat is expected to take the gavel in January after her party won a Senate majority in the November 3 elections. The appointment has not yet been formally confirmed, but it is widely expected in Washington. She currently serves as the committee’s top Democrat.
The change would give Warren new tools to pursue long-running concerns about digital assets. Until now, crypto firms could ignore letters from her office. As chair, she could compel documents and testimony through subpoenas, The Wall Street Journal reported. Her early targets reportedly include insider trading on prediction markets, consumer protection practices at crypto companies and alleged conflicts of interest involving Trump and his family. None of these issues are new for the senator.
Prediction markets have grown quickly, with brokerages reporting an event contracts boom this year. On October 28, Warren and Republican Senator John Curtis wrote to Kalshi and Polymarket about how they stop insider trading on election bets, according to reports. Warren has also criticised the banking regulator OCC for letting nine crypto firms, including Coinbase, operate like banks. In May, she asked the SEC to review World Liberty Financial.
Market structure bill faces a new gatekeeper
Lawmaking may be Warren’s most powerful tool. The Clarity Act, a bill that would have defined how crypto is regulated, fell 49 to 50 in a key Senate vote on September 15, short of the 60 votes needed. Warren opposed it, saying it did nothing to stop Trump from making further crypto profits after he earned more than $1.4 billion. Any revived bill would need her committee’s approval.
That could prolong the regulatory uncertainty the industry had hoped to end. Crypto prices fell after the September vote. The committee’s hearings could also bring unwelcome attention to specific companies and tokens. World Liberty Financial’s WLFI token traded near $0.047 this week, close to a record low set on November 5, and is down about 61% in a year, according to BeInCrypto. Coinbase shares could also face pressure from public scrutiny, BeInCrypto said.
Limits on the chair’s influence
Senate Banking also reviews nominees for financial regulators such as the SEC. With a majority, Democrats could block Trump’s picks and slow crypto-friendly appointments. Warren’s influence still has limits. She cannot write rules on her own, and the SEC and the Commodity Futures Trading Commission continue to advance crypto policy under their existing powers. A bipartisan deal on crypto rules remains possible. Such a deal would reduce the uncertainty facing the industry.
Bitcoin was trading at $75,599, down 5.95% over 24 hours, according to BeInCrypto, though no report has tied the decline to Warren. The fall extended a recent market slide after the midterms. BeInCrypto said politically exposed tokens and crypto stocks would likely feel tighter oversight more than long-term holders of major coins. For two years, Republicans had set the Senate’s crypto agenda. The new Congress will convene in January.