House Democrats are discussing a crypto market structure bill that could expand the Securities and Exchange Commission's oversight of digital-asset markets and revive investor protections that were previously rejected, according to a report by journalist Eleanor Terrett cited by CoinGape.
No new bill has been introduced. Three industry sources who spoke with Democratic staffers described the discussions, which follow the party's November 3 election victories and could reopen negotiations over the stalled CLARITY Act.
Investor Protections Back in Focus
Lawmakers are looking at expanding Representative Maxine Waters' Crypto Investor and Consumer Bill of Rights. When the House considered the CLARITY Act in 2025, Waters proposed protections that were not adopted.
Her suggestions included isolating customer funds, processing withdrawals within 24 hours and requiring monthly proof of reserves presented by an auditor. They also called for protection from front-running and round-the-clock customer support.
The new effort might incorporate some measures that Senate Democrats and Republicans negotiated before a failed procedural vote in September. The Senate fell just short of the 60 votes needed to move to debate on the House-passed legislation, leaving that bill stalled. The setback also preceded a decline in crypto industry lobbying, including spending by Coinbase.
SEC Versus CFTC Authority
The discussed bill would expand the SEC's powers to oversee crypto markets and restrict the authority of the Commodity Futures Trading Commission. That differs from the approach that passed the House, which gave the CFTC primary jurisdiction over digital commodities and intermediaries.
Democrats are also weighing limitations on cryptocurrency transactions by President Donald Trump and other federal officials. Waters previously proposed a Stop TRUMP in Crypto Act that would limit some digital-asset transactions by members of Congress and their relatives. Those agreements have not been reached in the latest negotiations.
Republicans have characterized the new plan as a "messaging bill," according to Terrett. No full draft is available, and the SEC-CFTC division and ethics provisions remain unfinished. The conversations concern bills for the next Congress, which starts in January 2027.
Industry Pushes for Bipartisan Rules
Democrats won the House and Senate in the November 3 midterms, changing who will lead crypto legislation. Waters could return to chair the House Financial Services Committee, although leadership decisions remain pending.
Ripple CEO Brad Garlinghouse said pro-crypto candidates won in both parties and called for "clear rules, built in America." Ripple chief legal officer Stuart Alderoty also backed cooperation across party lines and urged lawmakers to continue developing digital-asset regulations.
Newly elected pro-crypto lawmakers include Democrats and Republicans who have previously supported digital-asset legislation. Their participation could shape future negotiations, although neither party has announced a timetable for the proposed bill. The CLARITY Act also remains without a scheduled Senate vote.
