US Democrats plan new Crypto Market Structure bill after midterm wins

• US Democrats are reportedly considering reviving Rep. Maxine Waters’ Crypto Investor and Consumer Bill of Rights as part of a broader market structure proposal.
• The proposed legislation could expand SEC oversight of crypto markets while introducing stricter ethics restrictions targeting Trump and other federal officials.
• The development follows Democrats' dominance in US midterm elections.

House Democrats are reportedly discussing plans to introduce a broader crypto market structure bill in the next Congress, potentially reviving provisions they unsuccessfully sought to include in the Digital Asset Market Clarity Act (CLARITY).

Democrats set to revisit rejected crypto regulatory proposals

In an X post on Wednesday, crypto journalist Eleanor Terrett shared that the proposal would expand the Crypto Investor and Consumer Bill of Rights, an amendment introduced by Rep. Maxine Waters during the House’s consideration of the CLARITY Act.

Terrett reported that the proposal could combine Democratic provisions not adopted in the House with measures Senate Democrats negotiated with Republicans before the Clarity Act failed to advance in September. She cited three unnamed industry sources who had spoken with Democratic staffers.

Ideas under discussion include giving the Securities and Exchange Commission (SEC) a greater role in supervising crypto markets while limiting the Commodity Futures Trading Commission's (CFTC) authority. Democrats are also expected to pursue ethics restrictions that could limit President Donald Trump and other federal officials from engaging in crypto-related business activities.

Republicans have reportedly described the proposal as a “messaging bill,” suggesting it may be intended to set out Democratic priorities rather than secure immediate bipartisan support.

The discussions follow Democrats’ dominance in the November 3 US midterm elections, in which the party won control of both the House and Senate. Democrats will take control when the new Congress convenes in January 2027, creating a different political environment for crypto regulation.

Republicans played a leading role in advancing crypto policies, including the GENIUS Act, the landmark federal framework for payment stablecoins, introduced by Republican Senator Bill Hagerty and signed into law on July 18.

CLARITY Act faces renewed political uncertainty

Republicans also spearheaded the CLARITY Act, sponsored by Rep. French Hill. The bill passed the House in July 2025, with all 216 Republicans voting in favor, along with 78 Democrats. It sought to define how digital assets would be regulated and divide oversight between the SEC and CFTC.

Despite clearing the House, the legislation faced months of Senate negotiations over regulatory authority, decentralized finance (DeFi), banking concerns and ethics safeguards.

Democrats argued that it did not sufficiently address conflicts of interest involving Trump and other senior officials. Banking groups, meanwhile, warned that crypto products offering rewards could draw deposits away from traditional lenders.

Republicans released a revised draft in September, stating they included 126 substantive changes Democrats requested. The revisions included new ethics language, measures addressing stablecoin-related deposit risks and adjustments to protections for blockchain developers.

However, on September 15, the Senate voted 49-50 to block a procedural motion to begin consideration of the bill, short of the 60 votes required to advance it. Four Republicans joined Democrats in opposing the motion. The vote blocked the bill from moving forward in the current Congress.

​With Democrats preparing to take control of both chambers in January 2027, the party could pursue a different approach to crypto market regulation, potentially placing greater emphasis on investor protections, SEC oversight and restrictions on public officials' crypto-related business interests.