House Democrats Eye New Crypto Market Structure Bill With Greater SEC Powers: Report

House Democrats are discussing a crypto market structure bill that could expand SEC oversight and revive rejected investor protections. The proposal follows their November 3 election victories and could reopen negotiations over the stalled CLARITY Act.

House Democrats Revisit Maxine Waters’ Crypto Investor Protections

Journalist Eleanor Terrett reported on Wednesday that lawmakers want to expand Maxine Waters’ Crypto Investor and Consumer Bill of Rights. Lawmakers have not introduced a new bill, rather, three industry sources who spoke with Democratic staffers described the discussions.

In 2025, Waters proposed protections when the House considered the CLARITY Act, but those amendments were not adopted. Her suggestion involved isolating customer funds, 24-hour withdrawal processing and monthly proof of reserves presented by an auditor. It also has requested protection from front-running and 24/7 customer support.

The new effort might include some of the measures Senate Democrats and Republicans negotiated before the failed procedural vote in September. The Senate fell just short of the 60 votes required to move to debate the legislation passed by the House, thus keeping that bill stalled. The setback also preceded a decline in crypto industry lobbying, including spending by Coinbase.

Democrats Weigh Expanded SEC Oversight and Trump Crypto Restrictions

The bill would expand the powers of the Securities and Exchange Commission to oversee crypto markets and restrict the authority of the CFTC. That’s not the approach that passed the House, which gave the CFTC primary jurisdiction over digital commodities and intermediaries.

Democrats are also mulling limitations on cryptocurrency transactions by President Donald Trump and other federal officials. Waters previously proposed a Stop TRUMP in Crypto Act that would limit some digital-asset transactions by members of Congress and relatives. These agreements have not yet been reached in the most recent negotiations.

Republicans have characterized the new plan as a “messaging bill,” Terrett said. There has been no full draft available and the SEC-CFTC division and the ethics provisions have not yet been completed. The conversations are about bills for the next Congress, which starts in January 2027.

Crypto Industry Calls for Bipartisan Rules After Midterm Elections

Democrats won the House and Senate in the November 3 midterms, changing who will lead crypto legislation. Waters could return to chair the House Financial Services Committee, although leadership decisions remain pending.

Ripple CEO Brad Garlinghouse said pro-crypto candidates won in both parties and called for “clear rules, built in America.” Ripple’s chief legal officer Stuart Alderoty also supported cooperation across party lines, urging lawmakers to continue developing digital-asset regulations.

Meanwhile, newly elected pro-crypto lawmakers include Democrats and Republicans who have previously supported digital-asset legislation. Their participation could shape future negotiations, although neither party has announced a timetable for the proposed bill. The CLARITY Act also remains without a scheduled Senate vote.