TD Cowen analysis suggests that the results of next week's US midterm elections could hinder the passage of the CLARITY Act, a cryptocurrency legislation. If Democrats achieve a sweeping victory, crypto skeptics like Senator Elizabeth Warren could take control of key committees, and the bill would face resistance. However, regulators may still advance rules favorable to the crypto industry, as President Donald Trump is expected to continue supporting crypto and could veto bills that limit regulators' power. The bill aims to establish federal rules for digital assets but is currently stalled due to bipartisan disagreements on issues such as ethical provisions for officials' crypto investments and stablecoin yields.