Crypto commentator Tyler D has said that a Democratic takeover of Congress in the November 3 US midterm elections could slow crypto legislation and bring tougher regulatory conditions, but it may also benefit privacy cryptocurrencies.

According to the analyst, even if the next two years bring less regulatory progress, the industry has grown too large to be stopped by a change in political leadership.

Slower Crypto Progress but Potential Gains for Privacy Coins

In a video published by Decrypt ahead of the elections, Tyler D suggested that a Democratic sweep would mean less progress for the industry, although privacy coins could benefit from the resulting regulatory climate.

“The first-order take on the Dem situation for crypto is not that bad,” he remarked. “Overall, you’re going to have less progress, but then it’ll be good for privacy coins.”

The discussion also touched on the difference between legislation and regulatory rulemaking, with the analyst explaining that the SEC and CFTC can introduce and change rules but cannot independently pass laws.

Furthermore, he pointed out that some of those decisions could be reversed if a different administration came to power or there was a change in leadership in the watchdog agencies. That said, he is optimistic about the industry’s ability to withstand political change:

“I think the crypto train is too big to stop at this point. I think the next two years are going to be fine no matter what,” he said.

That view is similar to that of another market watcher, VirtualBacon, who has also dismissed any thoughts of a Democratic victory triggering an immediate Bitcoin collapse. According to him, crypto legislation in Congress has bipartisan support, so an election result is more likely to affect sentiment than the industry’s underlying regulatory direction.

How Bitcoin Is Doing

Yesterday, Bitcoin recovered to around $78,000 after falling to approximately $76,100 following the Binance hack last Friday. But at the time of writing, with politicians making last-minute election pitches, the OG cryptocurrency was back near $76,000, having shed slightly more than 2% of its value in 24 hours and nearly 4% across seven days.

It was all red in the other charts, including a 6% dip in the last fortnight and an over 9% drop in the past month, which has kept BTC almost 29% lower than where it was this time last year and 39% away from its all-time high that was also recorded last year.

Louie, an analyst at BecauseBitcoin, identified $79,000 to $80,000 as the range it needs to reclaim through three or four daily closes to give the recent drop a chance of being nothing more than a bear trap. However, if that fails, he sees dropping to “$70k at a minimum” with lots of bearish pressure against the market.

In the midterms that took place in 2018 and 2022, BTC dropped by 51% and 25%, respectively, although, as trader dealer.eth noted, each of those bear market lows was followed by a positive 12-month run.

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