The midterm results are now clear: Democrats have secured control of both the House and the Senate, even winning the governorship of Texas—the first time since 1990 that a Democrat has held the office, and the first-ever Latina female governor in Texas history. The scenario we previously considered most likely has now become a certainty. Does Democratic control of both chambers mean a devastating blow to AI and crypto? From a personal perspective, such concerns are overblown. Let’s revisit what was discussed in recent tweets: 1) While Democrats now control both chambers, executive power remains with the Republicans—Trump is still president. Remember, the U.S. is a presidential system, and Trump holds veto power over legislation. Over the next two years, Republicans will face major obstacles advancing their bills in Congress, and even if Democrats pass their own legislation, Trump can still veto it. To override a presidential veto, both chambers need a two-thirds majority. The current congressional majorities fall far short of that threshold. 2) On AI, both parties are focused on the societal impacts of data center construction—primarily concerning power infrastructure. Even Democrats aren’t saying no to building; rather, they’re calling for tech companies to shoulder more of the costs. This isn’t a question of direction, but of degree. On crypto, Republicans face difficulty advancing new policies; instead, regulation continues to rely on existing agencies like the SEC and CFTC operating within their current mandates. As previously discussed here https://t.co/9hN8uSWLT6, these agencies were under Republican control during Trump’s term. Crucially, AI has become a global arms race. Democrats won’t allow the U.S. to fall behind in AI competition—they simply can’t afford the consequences. Their approach is more about correction: tempering what they see as excessive or reckless policies under Republicans, not halting progress altogether. The same applies to crypto: it’s about recalibration. Moreover, the crypto community in the U.S. is sizable and deeply interconnected with diverse interests—it’s far from a marginal group. The market has likely already priced this in. 3) By winning the House, Democrats can now block much of the new legislation proposed by Republicans. Adding control of the Senate amplifies this impact: it grants them authority over personnel confirmations, committee agendas, and significantly stronger oversight and negotiation capabilities. They can effectively constrain Republican legislative momentum and initiate congressional investigations and hearings—but that’s the limit. After all, the Department of Justice will remain under Republican control for the next two years. This is why we previously said “what matters more than the midterm results is what comes after”: policy uncertainty will gradually fade as markets adjust their expectations based on the new balance of power in Congress. The boundaries of possible policy outcomes will become clearer—how far Democrats can push, and where they’re constrained. From another angle: over the next two years, Trump’s ability to act unilaterally will be curtailed—this restraint may actually be positive for markets.