House Democrats are discussing a crypto bill that would expand the Securities and Exchange Commission's (SEC) power over trading platforms and likely tighten limits on President Donald Trump's crypto business, according to three industry sources briefed by Democratic staffers and cited by Eleanor Terrett, host of the Crypto America podcast. No bill text exists yet.
What the Bill Would Change for Investors
The proposal would build on Rep. Maxine Waters' 2025 Crypto Investor and Consumer Bill of Rights, which the House Rules Committee blocked from a floor vote by a 4–8 margin, according to its records. The plan would fold in Democratic elements of the CLARITY Act and expand into a broader crypto market structure bill next Congress.
Under the framework described by the sources, crypto platforms would be required to offer 24/7 customer service, insurance-like coverage, and withdrawals within 24 hours. Platforms would also publish monthly proof of reserves, an auditor-checked report showing they hold customer assets.
The SEC would gain a bigger supervisory role, while the Commodity Futures Trading Commission (CFTC), which oversees derivatives markets, would get a smaller one. Exchanges are already familiar with the SEC's approach: in June 2023, the agency charged Coinbase with running an unregistered securities exchange, broker, and clearing agency.
How the Plan Could Hit Trump's Crypto Income
Democrats are also likely to add ethics rules restricting crypto activity by Trump and other federal officials. Trump earned about $1.2 billion from crypto in 2025, according to disclosures reported by AFP. Nearly $550 million came from World Liberty Financial, his family's crypto company. The White House denies any conflict.
Ethics fights already stalled the CLARITY Act, the industry-backed bill dividing oversight between both regulators. It failed a 49–50 Senate vote in September.
Can Democrats Get the Bill Into Law?
Republicans call the plan a "messaging bill," Terrett reported. Any bill still needs 60 Senate votes and Trump's signature.
On Wednesday, BeInCrypto reported that crypto's biggest bill would start over under Democrats if CLARITY stalled. Hours later, Terrett's sources described that reset taking shape.
Waters, in line to chair House Financial Services, demanded tougher oversight after last month's $6.3 billion Binance hack.
"Americans deserve to know their money is safe," Waters said.
If CLARITY stalls this year, the industry's preferred bill faces a Democratic rival in January.
