Democratic midterm wins could bring scrutiny for Wall Street and crypto firms
XLF•A Democratic victory in one or both chambers of Congress could give the party subpoena power and authority to summon agency heads and CEOs, while the Trump administration could continue easing financial regulations.
1. Potential investigations
A Democratic win in either chamber would give lawmakers subpoena power, larger investigative staffs and the ability to call agency heads and corporate CEOs to testify. Democrats are preparing to examine the Trump family’s ties to crypto and prediction markets, which they say raise conflict-of-interest concerns.
2. Possible targets
Democrats could also scrutinize financial regulators, Wall Street’s role in financing AI and data centers, and issues including housing affordability. Representative Sean Casten may challenge Maxine Waters for the top Democratic role on the House Financial Services Committee, while Senator Elizabeth Warren is seen as the frontrunner to chair the Senate Banking Committee.
3. Costs for companies
Executives and attorneys said oversight could slow policy initiatives and create legal and advisory costs for companies, with adverse headlines posing reputational risks. Webull shares fell to a near four-month low after a congressional panel published a report probing the company’s ties to China.
