The unexpected election day truce between crypto exchanges Binance and FTX might be enough to overshadow voting-related volatility as shifting digital asset regulation comes into focus, analysts said Tuesday. 

When Binance CEO Changpeng “CZ” Zhao announced tentative plans on Twitter to acquire rival exchange FTX, cryptocurrencies posted a swift turnaround — a bounce analysts were not anticipating ahead of midterm election results. 

“There is a definite agenda on the Republican side for crypto legislation, there’s shovel-ready bills ready to go,” said Nic Carter, general partner at Castle Island Ventures, on a Blockworks Twitter Spaces. “And I’m certain that this will focus on the spot [markets,] the centralized exchanges, primarily because that’s how the government knows how to regulate.” 

The acquisition — which is pending due diligence and settling on terms — comes after FTX CEO Sam Bankman-Fried, known for his cozy political relationships with US politicians and corresponding campaign donations — drafted his own proposal for crypto legislation that was presented by US Sens. Debbie Stabenow and John Boozman in September.