Foreign media report that the window for U.S. Congress to legislate on the structure of the crypto market is narrowing. The Digital Asset Market Clarity Act has not yet been voted on before the adjournment, and if Democrats regain control of the House of Representatives after the 2026 midterm elections, leadership of the relevant committees may shift to lawmakers who are more cautious toward crypto legislation.
The bill has not yet been voted on.
The report notes that the prediction market Kalshi currently gives the Democratic Party an 84% probability of regaining a majority in the House of Representatives. Meanwhile, Polymarket’s expectation for the passage of the CLARITY Act within this session has fallen below 50%.
The core of this bill is to classify digital assets as commodities, securities, or neither, thereby clearly defining the regulatory jurisdiction of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill also addresses platform registration, token project disclosures, and reduces overlapping enforcement actions by the SEC and CFTC against the same platform.
Three lawmakers are considered key figures.
The report names three Democratic lawmakers: one is Representative Maxine Waters of California, who could reclaim the chairmanship of the House Financial Services Committee if Democrats regain control of the House; another is Representative Shontel Brown of Ohio, who may lead the House Agriculture Committee; and the third is Senator Elizabeth Warren of Massachusetts, who could also head the Senate Banking Committee if Democrats take control of the Senate.
The article states that these three committees are key to the progress of the Crypto Market Structure Act. In the past, all three have generally emphasized investor protection, disclosure requirements, and enforcement tools over prioritizing the industry's demand for regulatory clarity.
The bill's content may be rewritten.
For example, Waters strongly opposed Facebook’s Libra stablecoin project in 2019, citing systemic risk, consumer protection, and excessive financial power concentrated in tech platforms. However, the report notes that she does not reject cryptocurrency legislation entirely; she participated in negotiations on a stablecoin bill in 2022, merely advocating for stronger protective measures.
The article suggests that if the CLARITY Act moves to a Democratic-led committee, likely changes would include increased disclosure requirements, tighter exemptions for token issuers, and enhanced enforcement powers for regulators. For the industry, this means that even if the bill is not directly rejected, it could face prolonged negotiations.
Supporters argue that clearer regulatory divisions will help attract institutional capital to the market. Charles Schwab previously referred to the CLARITY Act as a key catalyst for its digital assets business. Opponents, however, warn that granting the industry excessive exemptions could undermine investor protections under securities laws.