The U.S. Capitol, as viewed from the National Mall, at blue hour in Washington, D.C., U.S. [Photo Credit: Reuters]
A Democratic victory in one or both chambers of Congress would not stop President Donald Trump’s administration from handing regulatory breaks to Wall Street banks, prediction markets and crypto firms, but it would give Democrats powerful tools to probe the industries and their watchdogs.
Polls suggest Democrats are poised to win the House of Representatives and have an edge in the race for the Senate. If the party prevails in either chamber, it would gain subpoena power, larger investigative staffs and the power to call in agency heads and corporate CEOs to testify, creating headaches and potential legal entanglements for those under scrutiny.
The administration’s financial policy agenda includes easing rules and supervision it says are too onerous and impeding economic growth, while promoting innovation that it says will boost the economy, including crypto and prediction markets.
Democrats are already preparing to investigate Trump’s and his family’s ties to the crypto and prediction market industries, Reuters reported. They say such dealings are a conflict of interest. The party has also been pushing for more oversight of prediction markets, which they say may be creating new avenues for misconduct and undermining national security by allowing government insiders to broadcast confidential information.
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Prediction markets say they vigilantly guard against misconduct. The administration says supporting crypto and prediction market innovation will keep American jobs and capital onshore.
Asked about such potential probes in a September 30 phone interview, Representative Ro Khanna, a Democratic member of the House Oversight Committee, told Reuters: “I absolutely think we need to look at these financial transactions, these crypto transactions, and see if any of our national security has been compromised.”