Financial Services Congressional Outlook Following the 2026 Midterm Elections

Sen. Elizabeth Warren (D-MA) is the presumptive incoming chair of the Senate Banking Committee, while Rep. Maxine Waters (D-CA) is the presumptive incoming chair of the House Financial Services Committee. Both lawmakers have identified a range of issues—many of which overlap—that could shape the financial services agenda in the 120th Congress.

This alert outlines anticipated committee priorities and potential implications for financial institutions and other industry stakeholders.

An Expanding Congressional Oversight and Legislative Agenda

House Financial Services Committee—Presumptive Chair Maxine Waters (D-CA)
Rep. Maxine Waters is the presumptive incoming chair of the House Financial Services Committee. Her announced and anticipated priorities include:

• Affordable Housing and Mortgage Finance: Continued attention to housing affordability, homelessness, mortgage finance and federal housing programs, including potential bipartisan housing legislation.
• Consumer Financial Protection: Oversight of the Consumer Financial Protection Bureau (CFPB), including its funding, operations and enforcement responsibilities. Waters has also expressed concerns about junk fees, predatory lending and practices that increase costs for consumers. In particular, it is possible that Democrats on the House Financial Services Committee may choose to conduct oversight regarding how the CFPB has conducted enforcement over the past two years, including dismissing enforcement actions against certain financial services providers.
• Cryptocurrency and Prediction Markets: Consideration of regulatory safeguards for cryptocurrency businesses and prediction markets, including consumer protection, market integrity, transparency and potential risks to the financial system.
• Financial Stability and Emerging Technology: Examination of financial stability risks associated with emerging technologies, including artificial intelligence and its potential effects on financial markets and institutions.
• Private Equity Oversight: Examination of private equity ownership, investment practices, transparency and accountability, including practices Waters has identified as potentially harmful to consumers and communities.
• Credit Reporting and Consumer Protection: Increased scrutiny of credit reporting practices, medical debt, and the accuracy and use of consumer credit information, particularly where those practices may adversely affect consumers’ access to credit and financial services.
• Community Banking and Financial Inclusion: Continued attention to community banks, minority depository institutions, Community Development Financial Institutions (CDFIs), access to financial services and implementation of the Community Reinvestment Act (CRA).

Rep. Waters is also expected to examine Trump administration policies affecting financial services, including changes to the CFPB and potential conflicts of interest involving cryptocurrency businesses.

Senate Banking Committee—Presumptive Chair Elizabeth Warren (D-MA)
Sen. Elizabeth Warren is the presumptive incoming chair of the Senate Banking Committee. She is expected to use the committee’s oversight authority to examine financial industry practices, corporate conduct and Administration policies while advancing proposals focused on consumer affordability and financial accountability.

Her announced and anticipated priorities include:

• Corporate Accountability and Financial Services Oversight: Increased scrutiny of Wall Street, major corporations, private equity firms, technology companies, cryptocurrency businesses and business activities involving the President’s family and associates.
• Consumer Affordability and Financial Protection: Examination of credit card interest rates, consumer and student debt, medical costs, insurance premiums, grocery prices and housing affordability. Warren has supported proposals to limit credit card interest rates.
• Credit Reporting and Consumer Debt: Oversight of credit reporting practices, consumer debt, and the impact of inaccurate or harmful credit information on consumers, including potential effects on access to credit and financial opportunities.
• Private Credit and Financial Stability: Examination of the rapid growth of private credit markets and potential risks to financial stability, including risks associated with a potential artificial intelligence investment bubble.
• Cryptocurrency and Prediction Markets: Increased scrutiny of cryptocurrency businesses and prediction markets, including market oversight, consumer safeguards, transparency and potential insider trading.
• Artificial Intelligence and Technology: Examination of the financial and economic implications of artificial intelligence, including potential risks to financial markets and broader economic stability. Warren has also expressed interest in restricting exports of advanced AI chips to China.

Potential Implications for Financial Institutions and Industry Stakeholders
The anticipated change in congressional control and committee leadership could result in increased oversight of financial institutions and other participants in the financial services industry. Potential areas of attention include:

• Consumer Finance and Lending: Increased scrutiny of lending practices, consumer fees, credit card interest rates, credit reporting, debt collection and access to financial products.
• Banking and Financial Regulation: Greater congressional attention to regulatory policy, bank supervision, community banking, financial stability and the role and authority of federal financial regulators.
• Private Equity and Private Credit: Additional questions regarding private equity ownership, private credit markets, transparency, investment practices and potential systemic risks.
• Cryptocurrency and Prediction Markets: Increased interest in regulatory frameworks, consumer protections, market integrity and oversight of emerging financial products and platforms.
• Technology and Financial Stability: Examination of artificial intelligence, its application in financial services and potential implications for consumers, financial institutions and the broader financial system.
• Housing and Community Development: Continued attention to affordable housing, mortgage finance, CDFIs and access to capital in underserved communities.

Financial institutions and industry participants may also experience increased congressional inquiries, information requests, hearings and investigations. The extent of these activities will depend on committee leadership, member priorities, and the legislative and oversight agenda established in the new Congress.

Stakeholder Engagement and Government Affairs Considerations
As the new Congress takes shape, financial institutions may wish to evaluate their existing relationships with trade associations, chambers of commerce, advocacy and civil rights organizations and other third-party stakeholders. Engagement with these groups can provide opportunities to communicate industry perspectives, identify areas of common interest, and monitor legislative and regulatory developments. Third party stakeholder organizations are likely to hold significant influence with lawmakers working on financial services issues in the incoming Congress, particularly given the anticipated leadership’s longstanding focus on financial inclusion, equitable access to credit, consumer protection and economic opportunity. These organizations provide a direct connection to communities and constituencies that congressional leaders may prioritize, while serving as influential advocates and trusted sources of information on the real-world impact of financial services policies. Financial institutions cultivating relationships with these groups—and understanding their priorities and engagement with congressional leadership—will be increasingly important to anticipating legislative and regulatory developments, informing policy discussions and advancing effective advocacy strategies. The post-midterm election lame duck period, as well as the opening weeks of the new Congress in January presents a critical opportunity for companies to elevate their priorities and position their interests as the new Congress develops its legislative and regulatory agenda.

Relevant considerations include:

• Congressional Relationships: Assessing relationships with incoming committee leadership, members and professional staff who may influence legislation and oversight involving financial services.
• Industry and Third-Party Stakeholders: Identifying trade associations, think tanks, nonprofit organizations, consumer groups and other stakeholders that participate in policy discussions or influence congressional perspectives.
• Legislative and Regulatory Monitoring: Tracking proposed legislation, committee hearings, congressional inquiries, agency actions and regulatory developments affecting financial institutions.
• Policy Advocacy: Evaluating opportunities to communicate industry positions and participate in discussions surrounding financial services legislation and regulatory policy.

Conclusion
Financial institutions should anticipate increased attention to consumer protection, credit reporting, prediction markets, private credit, affordable housing and financial stability. The 2026 midterm elections are expected to bring a new congressional focus to financial services policy and oversight, with Sen. Warren and Rep. Waters serving as presumptive chairs of the Senate Banking and House Financial Services Committees, respectively. The scope and direction of this agenda in the 120th Congress will depend on legislative proposals, committee activities and congressional oversight.

Pillsbury’s Government Law and Strategies team will continue to provide timely updates and actionable analysis on emerging legislative proposals, bipartisan initiatives and congressional oversight and regulatory developments affecting the financial services industry.