Huobi HTX Chief Analyst Andy: “Divided Congress” Should Not Be Viewed Overly Pessimistically; Midterm Elections Are Not a Core Variable for the Crypto Market

TechFlow news, November 4, 2026: The results of the 2026 U.S. midterm elections are largely clear, with Democrats reclaiming both the House and Senate, leaving the Trump administration in a “divided Congress” configuration. Regarding the potential impact on the crypto industry, Huobi HTX Chief Analyst Andy believes the biggest change is weaker expectations for regulatory legislation. The already-passed stablecoin legislation will not easily be reversed, and long-term trends such as stablecoin payments and RWA remain intact. However, advancing market-structure legislation such as the CLARITY Act has become significantly more difficult, and over the next two years the industry will rely more on administrative regulatory reforms by the SEC and CFTC than on legislative breakthroughs in Congress. This means lower policy certainty for the crypto industry, and some projects that depend on expectations of regulatory easing may face valuation adjustments.

From a market perspective, the short term is mildly bearish, but there is no need to be overly pessimistic. On the one hand, full Democratic control of Congress may limit further fiscal stimulus from Trump, dampening risk appetite for tech stocks and crypto assets. On the other hand, constrained fiscal expansion may also push U.S. Treasury yields lower, creating room for improved liquidity. The election result is not a core variable determining the direction of the current market move. Once political uncertainty is cleared, market focus will return to Fed policy, ETF fund flows, and U.S. stock market trends. In the short term, watch for volatility and leveraged liquidations, while medium-term valuation repair from improved liquidity, as well as areas with real demand such as stablecoins and RWA, are worth attention.

Note: The content of this article is not investment advice and does not constitute an offer, solicitation, or recommendation of any investment product.

Source: TechFlow