Billionaire hedge fund manager Ray Dalio said the balance of power in the United States Congress may shift towards Democrats in the 2026 midterm elections.
Dalio argued that inflation and affordability pressures are likely to become the dominant political issue influencing voters.
The affordability issue will probably be the number one political issue next year, contributing to the Republicans losing the House and a very messy 2027 on the way to a very interesting 2028 election.
Ray Dalio said.
He added that President Donald Trump’s current policy agenda benefits from a limited two-year window before potential political reversal.
Dalio said it is increasingly rare for one political party to maintain long-term control due to voter dissatisfaction with unmet promises.
The crypto industry has emerged as a major beneficiary of the Trump administration’s pro-technology and digital asset stance.
Analysts warn a Democratic takeover of the House could derail the pro-crypto regulatory shift underway in Washington.
The CLARITY market structure bill could be delayed until 2027 if lawmakers postpone action until after the midterms.
Prediction market traders currently estimate Democrats have a high probability of regaining control of the House.
Industry figures cautioned that a divided government could stall crypto legislation for years.