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For a practical deep dive on the midterms, take a look at this Akin alert. At a high level, it says:

Democratic control of both chambers significantly shifts the policy environment during the final two years of President Trump’s term. With sizable majorities, Democrats will have greater ability to advance their agenda, particularly on affordability and oversight of the Trump administration. Their ability to enact major legislation will remain constrained by the Senate’s 60-vote threshold for most legislation and President Trump’s veto authority (requiring an override vote of 67 votes in the Senate and 290 votes in the House).

Democratic priorities are expected to center on affordability and accountability across several industries including health care, tax policy, international trade, artificial intelligence and data centers, energy, and financial services. Control of the Senate will also give Democrats authority over committees and the confirmation process for executive branch and judicial nominees. However, Democrats will still need Republican support to advance major legislation, placing greater importance on areas of potential bipartisan agreement and on appropriations, authorization bills, and other must-pass legislation as vehicles for policy changes. Specific proposals and sector impacts are discussed in greater detail in the Issues to Watch section below.

For the Trump administration, the loss of unified Republican control will all but eliminate the path to advancing President Trump’s legislative priorities. The administration is therefore likely to rely more heavily on executive and regulatory authorities, while potentially devoting greater attention to foreign policy, international trade, and national security. Divided government is unlikely to mean a quieter policy environment, with executive actions, regulatory changes, tariffs and trade measures, and congressional oversight among the key areas to watch.

Here are some highlights for public companies from the “Issues to Watch” section:

With Rep. Maxine Waters (D-CA) and Sen. Elizabeth Warren (D-MA) poised to chair the House Financial Services Committee and Senate Banking Committee, respectively, expect an agenda focused on consumer protection, corporate accountability, and heightened scrutiny of the Trump Administration.

Democrats will shift the committee agenda toward stronger consumer and investor protections, expanded regulation, and oversight of the Administration’s deregulatory agenda and financial institutions, including their climate and Diversity, Equity, and Inclusion commitments and ties to President Trump.

Democrats will intensify scrutiny of AI, bank mergers, executive compensation, shareholder buybacks, private equity ownership, expanded retail investor access to private markets, and market concentration, along with increased attention to nonbank financial institutions and broader financial stability risks.

With a stablecoin framework in place, Democrats will focus on implementation through a consumer protection and financial stability lens while pursuing additional digital asset guardrails addressing investor protection, conflicts of interest, and illicit finance.

– Meredith Ervine