Following their 2026 midterm sweep of both congressional chambers, Democrats are drafting new cryptocurrency market-structure proposals that pivot away from the Republican-led approach of the past two years. The emerging legislative framework favors granting the Securities and Exchange Commission (SEC) broader supervisory power over digital asset markets, which would likely diminish the Commodity Futures Trading Commission's (CFTC) jurisdiction. This shift would subject crypto exchanges and token issuers to stricter securities compliance requirements. The plan seeks to integrate elements of Representative Maxine Waters' Crypto Investor and Consumer Bill of Rights, prioritizing investor safeguards that lawmakers argued were absent in earlier, GOP-backed proposals. The proposal includes new ethics rules designed to prevent conflicts of interest by barring the President, Vice President, members of Congress, and other federal officials from engaging in commercial cryptocurrency activities. Republicans have previously pushed back on these provisions, making them a major potential roadblock in future negotiations. Senator Elizabeth Warren is expected to become the chair of the Senate Banking Committee in January 2027. While she cannot unilaterally pass legislation, her new role will grant her significant power to direct hearings, launch investigations, and increase scrutiny on crypto firms and the federal agencies that regulate them. The Digital Asset Market Clarity Act, which passed the House in 2025 but stalled in the Senate over a 49-50 procedural vote, faces an impending expiration. If the outgoing Congress does not pass the bill during the lame-duck session before January 3, 2027, it must be reintroduced under the new, Democratic-controlled Congress.