The outcome of yesterday’s US midterm elections, which are still being counted, could have a much bigger impact on cryptocurrency markets than most people think.The counts made so far in the election show that the Republican Party is ahead for the House of Representatives. Considering that the White House will remain under Democratic control for at least two more years, if Republicans can secure a majority in the House and Senate, the US could face more political gridlock in the coming years.For cryptocurrencies, this election is crucial for the government to consider important regulatory issues.In the crypto industry, regulatory activities were expected to gain clarity by the end of 2022. However, the current government has not yet introduced a regulation for cryptocurrencies and has not shared its plans for this area. Even if a plan for this expectation emerges in the remaining period of the year, it is stated that the likelihood of this bill passing through Congress by the end of the year is very weak. With the finalization of the election result, the mobility on the crypto industry, where Republicans express more positive views than their colleagues, may also increase. Democratic Party representative Brad Sherman, whom crypto investors first recognized in 2019 when he proposed a ban on crypto asset purchases in the US, used sarcastic expressions for crypto assets as one of the most important crypto critics in the House. The fact that Sherman and some Democratic Party representatives underestimated and ignored this sector caused the regulatory activities that could be carried out on the sector to be disrupted. For this reason, analysts say that the Democratic Party’s loss of control of Congress in the elections could be a positive development for the crypto markets. It is believed that a Republican-controlled Congress will also be able to work more decisively in this area. Some sources also claim that Republicans could pressure regulators such as the SEC to ease their aggressive stance. However, despite these expectations, crypto assets fell sharply after Changpeng Zhao (CZ), CEO of cryptocurrency platform Binance, announced that they had signed a letter of intent to buy all of FTX, one of their biggest competitors, after the US Commodity Futures Trading Commission (CFTC) said it would launch an investigation into the developments. After these developments, Bitcoin is trading at around 17,434, down nearly 11% as of 13:30 today.