House Democrats are planning to push their own broader crypto market structure bill in the next Congress, after winning control of both chambers in the midterm elections, according to a report.
Journalist Eleanor Terrett reported on X on Wednesday, 4 November, citing unnamed sources, that Democrats plan to expand the Crypto Investor and Consumer Bill of Rights into a full market structure bill. The proposal, led by Rep. Maxine Waters, was put forward in 2025 as an amendment to the CLARITY Act.
According to Terrett’s sources, the new bill would give the Securities and Exchange Commission (SEC) more power to oversee crypto markets and limit the role of the Commodity Futures Trading Commission (CFTC). Democrats had not publicly confirmed the plan at the time of writing.
A different approach to the CLARITY Act
The plan would take a different path from the CLARITY Act, the Republican-backed bill that stalled in the Senate earlier this year. Democrats have opposed that bill over conflicts of interest linked to President Donald Trump’s crypto ventures.
Sen. Elizabeth Warren has been pushing for a ban on government officials and their families profiting from the crypto sector.
Carlos Guzman of trading firm GSR said it is not “game over” for crypto legislation, but that passing a bill has become harder. He expects any deal to need stronger consumer protection and conflict of interest rules.
Winners and losers for crypto
Rep. Bryan Steil, the Republican chair of the House digital assets subcommittee who helped move the CLARITY Act forward, lost his seat. James Butterfill, head of research at CoinShares, called it a “meaningful loss.”
Crypto-supportive candidates who won included Democrats Chris Pappas and James Talarico, and Republican Harriet Hageman.
Industry group Stand With Crypto endorsed 45 candidates, nearly half of them Democrats. Of those, 27 won and 12 lost, with six races still undecided at the time of writing. Executive director Mason Lynaugh said the group was “proud” that most of its endorsed candidates won.
Less reliant on Congress
Butterfill said crypto is becoming less dependent on the CLARITY Act, because the SEC and CFTC are already working to clarify the rules on their own.
What happens next
The new Congress takes office in January 2027. Any Democratic bill would need to be formally introduced, and its details, including how far it shifts oversight from the CFTC to the SEC, will decide how the industry responds.
