Democrats Pull Crypto Bill From the Dead 🎈 With Bigger SEC Powers on the Table

House Democrats are discussing a new crypto market structure bill that could expand Securities and Exchange Commission oversight, limit Commodity Futures Trading Commission authority and restrict President Donald Trump’s cryptocurrency activities, according to a report.

The talks follow the party’s November 3 election victories and could revive negotiations on the stalled CLARITY Act. Lawmakers have not introduced a new bill; three industry sources who spoke with Democratic staffers described the discussions. Journalist Eleanor Terrett reported on Wednesday that the effort is based on investor protections proposed by Rep. Maxine Waters.

Waters advanced her Crypto Investor and Consumer Bill of Rights in 2025 when the House considered the CLARITY Act, although its amendments were not adopted. The proposal called for isolating customer funds, processing withdrawals within 24 hours and having an auditor present monthly proof of reserves. It also sought protections against front-running and 24/7 customer support.

The latest discussions could incorporate measures negotiated by Senate Democrats and Republicans before a failed procedural vote in September. The Senate received 59 votes, one short of the 60 required to advance the House-passed legislation to debate, leaving the bill stalled. The vote was followed by a decline in crypto industry lobbying, including spending by Coinbase.

Ripple executives have called for bipartisan cooperation on crypto regulation. The reported Democratic proposal would also consider which federal agency should oversee digital asset markets, with broader SEC powers and narrower CFTC authority among the issues under discussion.