Democrats' Chance to Control Congress Estimated at 51%

With two months to go before the U.S. midterm elections, the likelihood of the Democrats simultaneously controlling both the House and Senate is predicted to be 51%. Kim Jae-seung, a researcher at Hyundai Motor Securities, raised the possibility of a "Blue Wave" based on the declining approval ratings of President Donald Trump and the Democrats' chances of taking control of Congress. The midterm elections will be held on November 3, with all 435 seats in the House of Representatives and one-third of the Senate up for election. A Blue Wave refers to a situation where the Democrats achieve a significant victory in the elections, securing control of Congress. If the Democrats gain control, there may be an increase in investigations and demands for documents from corporations, and the pace of implementing policies from the Trump administration could slow down. In budget negotiations, if the Democrats' negotiating power increases, conflicts may escalate. The cryptocurrency market is related to President Trump's policy messages, and if expectations for the Clarity Act's passage grow, uncertainties regarding regulatory authority and product classification may decrease. The results of the midterm elections could also impact the legislative environment for digital assets. Currently, the Democrats' potential control of Congress is acting as a short-term political variable for asset classes related to Trump administration policies.