What the Business World is Expecting Now That Democrats Control the Senate

Democrats won control of the U.S. Senate and the House in Tuesday's midterm elections, setting up fights with President Donald Trump over cryptocurrency oversight, tariffs and health insurance costs.

For businesses, the first consequence when the new Congress convenes in January could be a wave of hearings and demands for records. The results put several scenarios outlined by The Wall Street Journal before the election within reach. Democratic committee leaders can set hearing agendas and pursue subpoenas under their chambers' rules.

Trump has said he is prepared to veto legislation, so proposals such as tariff relief and restored health insurance subsidies could require negotiations with the White House or enough Republican votes to override him.

Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking Committee, is positioned to take the chair. The Journal reported that potential targets for congressional investigations include the Trump family's cryptocurrency ventures, corporate donations and allegations of favoritism in federal contracting.

Ohio Democrat Sherrod Brown's victory also returns a former Banking Committee chair who has clashed with the digital asset industry. Crypto firms pushing to limit securities regulators' authority over digital asset trading now face a Senate with different leadership and priorities.

The Senate majority also gives Democrats leverage over Federal Reserve appointments. Trump has appointed three of the Fed's seven governors, the Journal reported. Adding a fourth would require an opening and Senate confirmation.

The next scheduled opening is in early 2028, when Jerome Powell's term as a governor ends. The administration has sought lower interest rates, looser capital rules for big banks and easier access to the Fed's payment system for financial technology and crypto companies.

Wall Street dealmakers expect mergers and acquisitions to continue through the rest of Trump's presidency. Federal antitrust enforcement remains with the executive branch, and the Journal reported that the administration's approach has already encouraged companies to pursue deals they might have avoided under more aggressive enforcement.

Democrat James Talarico won the Texas Senate race after criticizing tax breaks for data center developers. More immediate decisions for those companies could come from state capitals. Texas Gov.-elect Gina Hinojosa and Georgia Gov.-elect Keisha Lance Bottoms backed temporary pauses on new data center construction during their campaigns. Their victories give those proposals a path onto the policy agenda in two of the busiest states for developers.

Democrat Adam Hamilton's victory in Kansas ousted Republican Sen. Roger Marshall, a leading sponsor of legislation that would give merchants more options for routing credit card transactions. Retailers seeking lower fees lose a Republican champion, although Trump has endorsed the effort and the legislation has supporters in both parties. Farm groups also see room for bipartisan action on biofuels. Higher requirements for blending renewable fuels into gasoline and diesel could boost demand for corn and soybeans.

Health insurers will be watching whether Democrats can revive the enhanced Affordable Care Act tax credits that expired at the end of 2025. Restoring them would lower what eligible customers pay for coverage and could bring some who dropped their plans back into the market. Democrats are also expected to challenge Medicaid work requirements, which policy experts cited by the Journal said could increase the number of uninsured people.