House Democrats Plan New Crypto Market Structure Bill

House Democrats Prepare New Crypto Legislation

House Democrats are actively working on plans for a comprehensive cryptocurrency market structure bill. The proposed legislation is planned for the new Congress starting on January 3, 2027.

This move follows the recent U.S. midterm election results. Crypto journalist Eleanor Terrett reported that Democratic lawmakers want to expand earlier regulatory efforts into a single, comprehensive law.

According to Terrett, three industry sources confirmed that discussions are currently taking place with Democratic staff members.

Building on the Investor Bill of Rights

The foundation of the new proposal builds on work previously led by Representative Maxine Waters. Specifically, it expands her earlier Crypto Investor and Consumer Bill of Rights.

Waters originally introduced her proposal in 2025 as an amendment to the CLARITY Act. Her goal was to establish clearer rules and stronger protections for everyday crypto users.

The new bill aims to merge Waters' consumer protection ideas with compromise provisions that Senate Democrats and Republicans discussed before the CLARITY Act stalled in September 2025.

Expanded Authority for the SEC

One of the most notable elements under debate is how oversight responsibility is divided between federal agencies. Under the current proposal, the Securities and Exchange Commission (SEC) would gain expanded authority over crypto trading.

At the same time, the Commodity Futures Trading Commission (CFTC) would hold a more limited supervisory role. This structure differs from the crypto industry's general preference for CFTC-led regulation.

Because many industry participants prefer CFTC oversight, agency jurisdiction is expected to be a major topic of debate when formal deliberations begin.

Proposed Ethics Rules for Federal Officials

The draft framework also introduces strict ethical boundaries for senior government officials and their immediate family members. These rules would prevent elected leaders from founding, promoting, or profiting from crypto businesses while in office.

This concept aligns with the Stop TRUMP in Crypto Act, which Representative Waters introduced in May 2025 to address potential conflicts of interest among public figures.

The topic has drawn renewed attention following reports that Donald Trump's crypto-related ventures generated an estimated $1.4 billion. Democratic lawmakers want closer scrutiny of such financial ties.

Republican Feedback and Market Overview

Republican lawmakers have reportedly criticized the initiative, describing it as a "messaging bill." They argue the text focuses heavily on political figures rather than building bipartisan consensus.

With Democrats set to control both legislative chambers, the bill outlines their main priorities for digital asset regulation moving forward.

These legislative discussions arrive while BitcoinBTC+3.20% trades above $81,000. Over a recent 24-hour period, the broader market experienced nearly $987.33 million in total liquidations, with short positions accounting for $566.59 million (57.4%). Readers should note that high volatility and rapid liquidations remain routine risks in crypto markets.

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