Will the Democratic Sweep Cloud Crypto Market Structure? | CoinDesk Daily

U.S. spot Bitcoin ETFs recorded $430 million in net outflows Thursday, wiping out Wednesday’s inflows and pushing weekly net redemptions to nearly $870 million. Fidelity’s FBTC led withdrawals with roughly $200 million, followed by BlackRock’s IBIT at $105 million. The flows came as the Nasdaq fell 5.5% and the S&P 500 dropped 4.3%, amid a broader market sell-off.

Analysts tied the downturn to concerns that a Democratic sweep of Congress could slow AI data-center construction. The election result also raised a separate risk for crypto: industry experts said Democratic control of both chambers could make passage of the Clarity Act less likely. Maddie Greenspan described the sweep as “the final nail” in the bill’s coffin, though the bill’s prospects had already been uncertain.

The Clarity Act failed to clear a procedural vote in September, when Republicans controlled both chambers, so its difficulty is not solely a consequence of the latest election. Crypto PACs spent roughly $170 million during this cycle, with at least $125 million directed toward Republicans. Disputes between banks and crypto firms over stablecoin rewards remain unresolved, while Trump family crypto ties give Democrats a reason to oppose the legislation.

There may still be room for a bipartisan alternative: more than 70 House Democrats had previously supported the Clarity Act, and some industry participants believe a revised version with stronger consumer protections could attract cross-party backing. That possibility leaves the outlook uncertain, but the election makes progress on crypto market structure more politically challenging.

Injective rallied after Nasdaq approved the listing of Canary Capital’s staked INJ ETF. The fund, trading under ticker INJC, begins trading today, offering a positive asset-specific development amid broader market weakness.