Following the sweep in U.S. midterm elections, House Democrats are actively discussing plans to introduce an overall cryptocurrency market structure bill for the upcoming Congress. According to crypto journalist Eleanor Terrett, the discussions involve expanding Representative Maxine Waters’ earlier Crypto Investor and Consumer Bill of Rights.
The plan would also incorporate Democratic provisions previously proposed during negotiations over the CLARITY Act.
Democrats May Introduce a New Crypto Bill
In an X post, Eleanor Terrett said House Democrats are discussing plans to turn Representative Maxine Waters’ Crypto Investor and Consumer Bill of Rights into a wider crypto regulation bill. The proposal could be introduced when the new Congress begins on January 3, 2027.
Terrett said three industry sources shared details of the talks with Democratic staff. The new bill could combine Waters’ earlier investor protection rules with changes Senate Democrats discussed with Republicans before the CLARITY Act failed to advance in September.
Waters first introduced the bill in 2025 to give crypto investors better protection and set clearer rules for the industry.
Democrats are now considering using that proposal as the foundation for a wider regulatory framework.
SEC Could Get More Power Under the Proposal
One of the biggest changes under discussion involves the division of authority between the SEC and the Commodity Futures Trading Commission (CFTC).
Under the proposal, the SEC could get more power to oversee crypto trading and market activity, while the CFTC could have a smaller role.
This is different from what the crypto industry has wanted, as many companies prefer the CFTC to have more control over crypto markets. The two sides could disagree over this issue when Congress begins discussing the new bill.
Trump’s Crypto Businesses Could Face New Restrictions
Another major part of the discussions involves ethics requirements for elected officials and their immediate families. The proposed rules may prevent senior government officials from starting, promoting, or profiting from crypto businesses while holding public office.
In May 2025, Waters introduced the Stop TRUMP in Crypto Act to limit certain crypto activities involving government officials and their families.
The issue has gained attention after reports that Trump’s crypto businesses made around $1.4 billion. Democrats want to examine his family’s crypto interests and possible conflicts of interest more closely.
Republicans Call It a “Messaging Bill”
Republicans have reportedly called the planned bill a “messaging bill.” They argue it targets Trump’s crypto businesses rather than creating rules both parties can support.
With Democrats set to control both chambers, the proposal could show how the new Congress plans to approach crypto regulation.
The proposal comes as Bitcoin recovers above $81,000. Meanwhile, the crypto market saw nearly $987.33 million in liquidations over 24 hours, with short positions accounting for $566.59 million, or 57.4% of the total.