House Democrats are weighing a crypto market structure bill for the next Congress that would build on proposals from Rep. Maxine Waters, according to a report by Eleanor Terrett citing three industry sources who spoke with Democratic staffers. The plan under discussion would give the Securities and Exchange Commission (SEC) a larger role and reduce the role of the Commodity Futures Trading Commission (CFTC) compared with the House-passed Clarity Act.
The proposal could incorporate Democratic provisions Waters offered as amendments to the Clarity Act, which were not adopted, along with measures Senate Democrats had agreed on with Republicans before a September cloture vote failed. No draft of the prospective bill has been released, and its reported details come from industry sources rather than lawmakers.
Waters’ Crypto Investor and Consumer Bill of Rights amendment, submitted in July 2025, called for round-the-clock customer service, insurance or similar coverage, fiduciary and best-execution standards, safeguards against front-running, bankruptcy-remote custody with 24-hour withdrawals, and monthly auditor-attested proof of reserves. It also proposed additional funding for the SEC and CFTC. The House Rules Committee blocked the amendment, preventing it from reaching a full House debate and vote.
A separate amendment from Rep. Joe Neguse would have barred members of Congress, the president and the vice president from issuing or endorsing digital assets. The report says further ethics rules targeting crypto activities by President Donald Trump and other federal officials are also likely to feature in the Democrats’ plans.
The agency balance is a key difference from the Clarity Act, which assigns the CFTC responsibility for most digital commodity trading, including exchanges, brokers and dealers. It also provides conditions under which tokens on mature blockchains would be exempt from SEC registration. The House passed that bill in July 2025, but it failed a Senate cloture vote on September 15.
The discussions follow Democrats’ sweep of Congress on Tuesday. Waters, the top Democrat on the House Financial Services Committee, is in line to become its chair in January, replacing French Hill, the Clarity Act’s sponsor. Republicans have described the potential Democratic proposal as a “messaging bill.” Any new market structure legislation would still need President Trump’s signature to become law.
Sources: Bitcoin Magazine.