TLDR
- House Democrats are discussing a broader crypto market structure bill for the next Congress.
- The reported proposal could expand SEC authority while limiting the CFTC’s oversight role.
- The discussions build on Maxine Waters’ rejected 2025 Crypto Investor and Consumer Bill of Rights.
- Waters’ earlier amendment proposed 24-hour withdrawals and monthly auditor-attested proof of reserves.
- The House Rules Committee blocked consideration of Waters’ amendment in a 4–8 procedural vote.
House Democrats are discussing a crypto market structure bill that could revive custody safeguards. The proposal could also expand Securities and Exchange Commission (SEC) oversight. Crypto In America reported this November 5, citing four industry sources who spoke with Democratic staff.
The proposal would build on Representative Maxine Waters’ rejected investor protection amendment. No bill text has been released, and its final provisions remain uncertain. The talks follow Democrats’ November 3 election victories, which secured control of both congressional chambers. No formal introduction date has been announced.
Waters’ Earlier Proposal Sets Specific Customer Standards
The House Rules Committee’s 2025 records provide the clearest outline of potential consumer protections. Waters’ Crypto Investor and Consumer Bill of Rights proposed withdrawals within 24 hours and bankruptcy-remote custody.
It also included round-the-clock customer service and monthly auditor-attested proof of reserves. Other provisions proposed insurance or SIPC-like customer protection, fiduciary duties, best-execution standards, and anti-front-running restrictions.
Those measures were never enacted. The committee rejected consideration of amendment 31 by a vote of 4–8 on July 14, 2025. That was a procedural decision, not rejection of a standalone law. The amendment also proposed funding for both federal market regulators. That differs from reports describing a more SEC-centered approach.
Expanded SEC Authority Would Reverse CLARITY’s Approach
Journalist Eleanor Terrett first reported the Democratic discussions on November 4. Her initial account cited three industry sources, while the subsequent Crypto In America report cited four.
🚨SCOOP: House Democrats are discussing plans to expand the Crypto Investor and Consumer Bill of Rights, @RepMaxineWaters’ amendment to the Clarity Act in 2025, into a broader crypto “market structure” bill next Congress.
The proposal would fold in Democratic Clarity Act…
— Eleanor Terrett (@EleanorTerrett) November 4, 2026
Reported options give the SEC more authority and the Commodity Futures Trading Commission (CFTC) less. That would contrast with CLARITY’s CFTC-led framework for covered digital commodity spot markets.
The Senate rejected a motion to advance CLARITY on September 15, 2026, by 49–50. Senator Thom Tillis subsequently moved to reconsider the procedural vote, leaving another attempt possible. Paradigm adviser Justin Slaughter said the Democratic proposal has been in development since the summer. His account places the drafting discussions before November’s election results.
DeFi and Government Ethics Remain Unresolved
Sources also described potential restrictions on crypto-related financial interests held by Trump and other federal officials. Waters’ separate 2025 amendment 30 addressed conflicts involving presidents, vice presidents, lawmakers and immediate family members.
Other Democratic amendments separately proposed tailored anti-money-laundering requirements for DeFi. An unnamed Democratic strategist told Crypto In America that decentralized finance could face intermediary-style requirements. However, no published draft establishes such obligations. Republican sources dismissed the effort as a “messaging bill,” according to the outlet. Any bill would need congressional approval and Trump’s signature. Congress could also override a presidential veto.
