Crypto News: Waters presses SEC as Democrats eye House majority

Democrats are gaining momentum ahead of the 2026 midterm elections. Prediction markets like Kalshi now give them 75% odds of retaking the House of Representatives.

This surge reflects historical midterm losses for the president’s party, Republicans under Trump, as well as recent Democratic gains in off-year elections.

At the same time, crypto news is driving attention. Rep. Maxine Waters has sharply criticized the Securities and Exchange Commission under Chairman Paul Atkins.

Her December 29, 2025, letter demands an oversight hearing on the agency’s dismissal of major cryptocurrency enforcement actions.

Prediction Markets Signal Democratic Surge

Kalshi data shows Democrats at 75% odds to win the House majority in November 2026. This figure is higher than earlier in 2025. Republicans currently hold a narrow majority of about 219–212/213 with vacancies as of late 2025.

Democrats need a net gain of roughly 3–5 seats to flip control. Voter enthusiasm polls favor Democrats. Backlash against GOP policies on inflation and trade adds pressure.

Kalshi’s trading volume exceeded 21,000 contracts in late November. This shows strong and sustained interest in the outcome. Markets are reflecting Democratic momentum.

Crypto News: Waters Challenges SEC Deregulation

Amid this development, Rep. Maxine Waters sent a letter to Chairman French Hill on December 29, 2025. Waters is a ranking Democrat on the House Financial Services Committee. She requested an immediate oversight hearing with SEC Chair Paul Atkins.

The letter accuses the SEC of politicization since the confirmation of Atkins. Enforcement actions against crypto firms, such as Coinbase and Binance, and Justin Sun, were terminated without a clear rationale.

Waters noted that nearly 60% of crypto cases have been dropped or paused since January 2025. No new actions have been filed. This is major Crypto news.

Waters also criticized the SEC for bypassing the Administrative Procedure Act requirements. Rules on AI, cybersecurity, and climate disclosures were withdrawn.

She raised concerns about Atkins’ private-sector ties and potential conflicts of interest. Waters described the changes as a rollback to pre‑1929 protections. This Crypto news highlights Democratic pushback against deregulation.

Crypto News: Broader Market and Policy Implications

The SEC’s shifts under Atkins prioritize crypto innovation. This aligns with Trump’s pro‑industry stance. Waters warns of risks to market integrity and investor protections.

Staffing cuts of 15–19% in key divisions weaken oversight. Shareholder rights are also reduced. These issues are central to Crypto news coverage.

If Democrats flip the House, Waters could become chair of the Financial Services Committee. Oversight would likely intensify. Deregulatory moves could be reversed.

This Crypto news ties directly to partisan battles. As of December 30, 2025, there has been no response from Hill or the SEC.

Analysts note impacts on crypto markets. Enforcement pullbacks boost confidence, but raise questions about fraud deterrence. Transparency is emphasized in Waters’ request. Atkins’ active role in case terminations remains controversial.