Bitwise CIO says younger Congress could protect crypto from Democratic sweep

Bitwise Chief Investment Officer Matt Hougan said the Democratic takeover of Congress is unlikely to derail crypto’s long term growth, arguing that younger lawmakers and changing demographics matter more than party control.

In a new commentary examining the November midterms, Hougan said political uncertainty could trigger volatility over the coming weeks or months, but any election driven pullback could present a buying opportunity.

Hougan cited figures from Stand With Crypto showing 51 incoming senators rated supportive of crypto, compared with 52 in the outgoing Congress. The advocacy group’s latest tracker lists 50 supportive senators and 241 House members, with some races still unresolved.

The demographic shift is also significant. Incoming senators are an average of 14 years younger than outgoing members, while the number of senators under 50 is expected to rise from eight to 15. At least 94 Gen Z and millennial candidates have won House seats.

Hougan pointed to a recent Charles Schwab survey showing that 33% of millennials own crypto, compared with just 8% of baby boomers.

He also highlighted newly elected Texas Democrat James Talarico, who at 37 will become the youngest US senator in January. Talarico holds an A rating from Stand With Crypto and previously supported legislation establishing a strategic Bitcoin reserve in Texas.

Hougan acknowledged that Democrats could increase scrutiny of Trump affiliated crypto ventures, including World Liberty Financial, while prediction markets could face additional regulatory pressure. Senator Elizabeth Warren is also expected to chair the Senate Banking Committee.

Despite those risks, Hougan expects Bitcoin, stablecoins and tokenization to remain largely insulated from the political shift, citing growing support for crypto among younger lawmakers.