Huobi HTX Chief Analyst Andy: "Divided Congress" Is No Reason for Excessive Pessimism; Midterm Elections Are Not a Core Variable for Cr

Democrats won both chambers of Congress in the 2026 U.S. midterms, leaving the Trump administration with a divided government, an outcome HTX chief analyst Andy said mainly weakens prospects for crypto market-structure legislation such as the CLARITY Act while the already-passed stablecoin law remains intact. With congressional breakthroughs less likely, the industry will depend more on administrative rulemaking by the SEC and CFTC over the next two years, reducing policy certainty and pressuring projects that rely on expectations of lighter regulation. Andy called the near-term market impact modestly bearish, since a Democratic Congress could curb further fiscal stimulus and weigh on risk appetite for tech stocks and crypto assets, though constrained spending could also pull Treasury yields lower and improve liquidity. He stressed the election is not the core driver of this cycle and that attention should return to Federal Reserve policy, ETF flows and U.S. equities once political uncertainty clears. Investors should watch for short-term volatility and leverage liquidations, while medium-term valuation repair from better liquidity and real-demand sectors such as stablecoin payments and RWA tokenization remain in focus.