Analysis: U.S. midterm elections could reshape the regulatory landscape, with Wall Street and the crypto industry facing investigative pressure

PANews reported on October 13, citing Reuters, that if Democrats win a majority in the House or Senate in the U.S. midterm elections, they may not necessarily be able to stop the Trump administration from pushing deregulation of Wall Street banks, prediction markets and the crypto industry, but they would gain stronger investigative and oversight tools.

If Democrats control either chamber of Congress, they would have subpoena power, larger investigative teams and the authority to require government officials and corporate executives to testify at hearings, meaning Wall Street financial institutions, crypto companies and relevant regulators could face greater scrutiny.

The report said the Trump administration has in recent years pushed to ease financial regulation and supported the development of cryptocurrency and prediction markets, believing such innovation helps economic growth. But Democrats have said they will investigate the business ties of Trump and his family to the crypto industry and prediction markets, and examine whether related transactions involve conflicts of interest.

People in the crypto industry are particularly focused on the possibility that Representative Sean Casten could wield greater influence if Democrats regain control of the House Financial Services Committee. Casten has previously pushed for stronger crypto regulation and opposed the industry-backed CLARITY Act.

In addition, Democrats are expected to potentially focus on issues such as bank regulatory policy, AI industry financing, data center construction and consumer financial protection. Analysts said congressional investigations could bring legal costs, management pressure and reputational risks to the companies involved.