Briefly
- Reports indicate that U.S. House Democrats plan to expand Maxine Waters' Crypto Investor and Consumer Rights Act into a broader market structure bill, granting the SEC additional regulatory authority.
- Candidates supported by Stand With Crypto won 27 races, lost 12, and 6 are still ongoing.
- Analysts say the path forward for the Clarity Act has become more difficult, but that does not mean the bill is dead.
According to reports, following a decisive victory in the U.S. midterm elections, House Democrats are preparing to advance cryptocurrency legislation.
Journalist Eleanor Terrett posted on X that there are plans to expand the Crypto Investor and Consumer Rights Act—a amendment to the Clarity Act championed by Democratic Representative Maxine Waters—into a broader market structure bill in the next Congress. Sources told Terrett that the proposal would include granting the SEC greater authority to regulate the crypto market while limiting the CFTC’s role.
Breaking: House Democrats are discussing plans to expand Rep. Maxine Waters’ Crypto Investor and Consumer Rights Act, introduced in 2025 under the Clarity Act, into a broader crypto “market structure” bill in the next Congress.
This proposal will be incorporated into the Democratic Clarity Act...
At first glance, the midterm election results might be seen as a major setback for U.S. crypto policy, as the Republican administration under President Trump is widely viewed as pro-crypto, while the Democrats are seen as more hostile. However, experts interviewed by Decrypt say the landscape may be shifting, with crypto policy evolving into a more bipartisan issue.
Crypto candidates and the Clarity Act
The advocacy group Stand With Crypto stated that, according to its election tracker, it endorsed 45 candidates in the midterm elections, of whom 27 pro-crypto candidates won, 12 lost, and 6 races were still undecided at the time of publication. Nearly half of the endorsed candidates were Democrats.
Mason Lynaugh, Executive Director of Stand With Crypto, stated in a statement shared with Decrypt: “We are proud to see that most of the candidates we endorsed won their elections. To those who did not return to Washington, thank you for speaking up for Americans who hold crypto at this critical time.”
Congratulations to the pro-crypto winners, including over 50 new pro-crypto members of Congress.
In one of the closest races, our advocates also played an active role: in Florida’s 9th District, Darren Soto won by a margin of 1,477 votes. In the same district, we mobilized…
CoinShares Research Director James Butterfill described Republican Bryan Steil as a "major loss" to the crypto industry. The Wisconsin congressman previously served as chair of the House Subcommittee on Digital Assets and was deeply involved in efforts to advance the Clarity Act, which stalled earlier this year after being sidelined in the Senate.
However, Butterfill also mentioned several winners—New Hampshire Democrat Chris Pappas, Texas Democrat James Talar, and Wyoming Republican Harriet Hageman—who support crypto policies. But he emphasized that the current challenge lies in turning this support into enacted legislation. He believes this could further slow the already difficult progress of the Clarity Act.
Carlos Guzman, Vice President of Research at GSR, told Decrypt: "I wouldn't say Clarity is out of the question, but it has become much harder. Some Democrats support clearer crypto regulations, but I don't think it will become a priority on their agenda. Any agreement would likely need stronger provisions on consumer protection and conflicts of interest."
The Clarity Act aims to establish rules for the crypto market and has been stalled in Congress since 2025. Democrats have opposed the bill, citing Trump's conflicts of interest in crypto; Massachusetts Democratic Senator Elizabeth Warren has pushed to include provisions banning officials and their families from profiting from the industry.
Guzman said: “For other crypto policies, the election results will not automatically change the leadership of the SEC or CFTC or prevent them from continuing to issue rules. However, congressional oversight will change, so we may see stricter scrutiny of regulatory decisions, and Democrats will be able to influence agency budgets and future appointments.”
Butterfill added that he believes the crypto industry's reliance on the Clarity Act is diminishing, as the SEC and CFTC are pushing for regulatory clarity without requiring congressional action. He also noted that AI regulation could divert attention away from crypto, thereby slowing down crypto policy progress.
After the midterm elections, Bitcoin experienced volatility. According to Decrypt data, Bitcoin is currently trading at approximately $76,820, down 4.1% on the day.
Butterfill told Decrypt: “Based solely on this outcome, I wouldn’t change my medium-term outlook for Bitcoin. Slower reforms may delay some institutional activity, but we expect the more direct impact to fall on U.S. crypto firms that rely on new regulatory licenses. If political uncertainty substantially weakens investment inflows or tightens financial conditions, we will reassess the outlook.”