Investor protection and custody may dominate US crypto oversight under Democratic Congress, executives say

A Democratic-controlled Congress would likely steer US crypto oversight toward investor protection and custody rules, according to industry executives, potentially pushing innovation and capital toward jurisdictions with more predictable regulation. The executives framed stricter oversight as a shift in emphasis rather than an outright crackdown, with custody standards and safeguards for retail investors emerging as the likeliest priorities. The concern is that clearer but tougher US requirements could prompt crypto firms and investors to favor markets with established, predictable frameworks. What to watch next is how legislative language on custody and investor safeguards takes shape, and whether capital flows and protocol activity gravitate toward offshore or other regulated hubs in response.