New Jersey saw the election of a Democrat governor, Mikie Sherrill, on November 4. Abigail Spanberger turned Virginia into a Democratic Party District. However, none of these victories alters anything to the cryptocurrency policy at the federal level.
The House and the Senate remain controlled by Republicans; hence, the roadblocks that blocked crypto bills in the previous instances remain intact. Most bills require 60 votes under Senate rules. The issue of crypto legislation that is being raised by Democrats has not disappeared.
On November 4 ballots, there was only one congressional contest, that of the 18th district in Texas. And two democrats went to a runoff, so no seats were really switched. This means the 119th Congress keeps the same partisan split that's been blocking comprehensive crypto reform.
New Jersey legalized Atlantic City casinos back in 1976. Online gambling started here in 2013. Now state officials are trying to figure out what to do about cryptocurrency gambling.
The Division of Gaming Enforcement has been looking at crypto for months. They want to know how digital money could work with current player protection rules. Right now, New Jersey's licensed casinos can't accept crypto payments.
David Rebuck ran New Jersey's gaming enforcement until 2024. He said the state should "sit on the sidelines and wait to see how cryptocurrencies would play out" because of volatility concerns.
The state passed the Virtual Currency and Blockchain Regulation Act to govern crypto technology and startups. But that law focused on the tech sector, not gambling. The Casino Control Act still doesn't address crypto directly.
The crypto ban has led players to explore offshore alternatives. The best crypto gambling sites offer streamlined registration processes compared to New Jersey casinos. Players can connect their crypto wallets and begin playing within minutes.
New Jersey casinos follow comprehensive verification procedures, including identity checks, age verification, and anti-money laundering compliance. Offshore crypto platforms operate under different regulatory frameworks that allow for faster onboarding processes. This difference in approach appeals to players seeking immediate access to gaming.
Some New Jersey sportsbooks have started accepting limited crypto deposits. They convert Bitcoin and Ethereum to dollars before placing any bets. This hybrid approach addresses volatility concerns while giving players additional payment flexibility beyond traditional banking methods.
Congress did pass one crypto law this year. The GENIUS Act created rules for stablecoins - cryptocurrencies tied to the dollar's value. It passed the Senate 68-30 in June and the House in July. President Trump signed it on July 18.
The Federal Reserve Bank of Kansas City studied methods for pricing stablecoin insurance. Their analysis shows how complex crypto regulation gets when you examine technical details about consumer protection.
But the bigger CLARITY Act is stuck. This bill would set up rules for crypto exchanges and trading. It passed the House 294-134 in July but needs 60 Senate votes. Senator Tim Scott chairs the Banking Committee reviewing it.
The CLARITY Act would divide oversight between the SEC and CFTC. It creates registration pathways for crypto intermediaries and defines different types of digital assets. But Democrats would prefer more aggressive words regarding decentralized finance procedures.
Senators Cynthia Lummis and Kirsten Gillibrand have been collaborating on crypto bills. They are authoring anti-money laundering regulations for digital currencies. They wrote anti-money laundering rules for digital currencies. But talks keep getting stuck on technical details.
Banking Committee staff from both parties have been meeting during the government shutdown. They're trying to work out compromises on the market structure bill. But major outside groups like the AFL-CIO oppose the current Senate draft.
New Jersey's gambling industry made over $5.3 billion in 2024. Online casinos and sports betting drove most of that growth. Atlantic City's physical casinos lost about 15% compared to last year.
Online casinos and sportsbooks generated over $536 million in revenue in April 2025, which represented one of the all-time highest monthly amounts. The figures indicate the extent to which the industry has been converted to digital platforms.
About 20% of Americans have traded crypto, according to federal surveys. Younger people use digital currencies more often. This suggests demand exists for crypto gambling in New Jersey.
One idea being discussed: let players deposit crypto that instantly converts to dollars. This would give crypto users convenience while avoiding price swings. Another option involves "regulatory sandboxes" where casinos could test crypto features under state supervision.
Governor Phil Murphy signed a law in August banning sweepstakes casino sites. These platforms used dual currencies to get around gambling laws. Murphy also increased taxes on online gambling from 15% to 18%.
The Brookings Institution published research warning about crypto risks. Their report mentions volatility, fraud, and threats to financial stability. State regulators read these studies when making policy.
The report notes how crypto is integrating into retirement systems and banking. Some 401(k) plans now allow crypto investments. Some state pension funds are exposed to crypto either by Bitcoin ETFs or crypto companies.
Atlantic City casinos view crypto integration as a means of competing with offshore casinos. One of the key casino promoters said that people are already playing crypto in other places. Finding ways to offer that flexibility through licensed platforms could help reach new customers.
New Jersey gaming officials say they won't rush into crypto rules. They learned from past gambling expansions that planning prevents problems. Other states are watching what New Jersey does.
Committee hearings on crypto gambling could start later this year. Any new rules would need public comment periods and testing phases. The Division of Gaming Enforcement would write specific regulations based on whatever framework gets approved.
The November elections changed who runs New Jersey, but not the federal math on crypto legislation. New Jersey's crypto future depends more on state decisions and federal agency rules than on Congress passing new laws anytime soon.
Industry watchers expect New Jersey will eventually approve some crypto gambling options. But regulators want strong consumer protections in place first.
