WASHINGTON, D.C. / CryptoWire.AI / – Senator Elizabeth Warren, one of the crypto industry’s strongest critics in Congress, is expected to take over the Senate Banking Committee in January. Warren represents Massachusetts. Democrats won control of the Senate in the November 3 midterm elections, giving the majority party the right to choose committee chairs. Warren’s appointment is not yet official, but few in Washington expect it to be challenged.
As the committee’s top Democrat, Warren has been able to send letters to crypto companies, but they were not required to respond. As chair, she would gain subpoena power, The Wall Street Journal reported on November 5. That would allow her to legally require documents and testimony. Subpoena power is one of the strongest tools available to a committee chair. Senate Democrats still need to finalise their committee leadership assignments before the new Congress begins.
The Journal said Warren’s early priorities include insider trading on prediction markets and consumer protection at crypto firms. She also plans to examine alleged conflicts of interest involving President Donald Trump and his family, the newspaper reported. Warren has pursued all three issues this year. On October 28, she and Republican Senator John Curtis asked Kalshi and Polymarket how they prevent insider trading on prediction markets tied to elections, according to reports.
Clarity Act would need her committee’s approval
Warren has also criticised the Office of the Comptroller of the Currency for allowing nine crypto firms, including Coinbase, to operate like banks. In May, she asked the Securities and Exchange Commission to examine whether World Liberty Financial, the Trump family’s crypto company, misled investors. Her strongest lever, however, is legislation. Any new market structure bill would have to pass through the committee she is set to lead.
The Clarity Act, which aimed to set out which agencies regulate crypto, failed a key Senate procedural vote by 49 to 50 on September 15. Three Republicans joined Democrats in voting against it. Warren opposed the bill, arguing that Trump had earned more than $1.4 billion from crypto ventures and that the legislation would not stop further gains. She also said it failed to protect investors and national security.
Hearings and nominations add pressure
Public hearings and subpoenas could create headline risk for named targets, including Coinbase shares and the WLFI token. WLFI traded near $0.047 this week, close to the record low it set on November 5, according to BeInCrypto data. The token is down about 61% over the past year. The committee also reviews nominees for financial regulators, giving Democrats the ability to block Trump’s picks. Crypto-friendly nominees could face longer confirmation fights as a result.
Warren’s power will still be limited. She cannot write regulations alone, and the SEC and the Commodity Futures Trading Commission are pressing ahead with crypto rules under existing authority. Bitcoin traded at $75,599, down 5.95% over 24 hours, though no report has linked the move to Warren. Democrats won control of Congress this week, ending two years in which Republicans set the Senate’s crypto agenda.