House Democrats Plan Broader Crypto Market Bill After Midterm Sweep, Report Says

House Democrats reportedly plan a broader crypto bill

House Democrats are reportedly planning to expand a consumer protection crypto bill into a wider market structure bill in the next Congress, according to journalist Eleanor Terrett.

The bill at the center of the plan is the Crypto Investor and Consumer Bill of Rights. It was led by Rep. Maxine Waters as an amendment to the Clarity Act in 2025.

Sources told Terrett the expanded proposal would give the SEC, the US securities regulator, more power to supervise crypto markets. It would also limit the role of the CFTC, which regulates derivatives markets.

Key numbers from the midterm results

• Stand With Crypto endorsed 45 candidates in the midterms, according to its election tracker.
• 27 endorsed candidates won, 12 lost, and six races were still live at the time of writing.
• Nearly half of the endorsed candidates were Democrats.
• Bitcoin was trading at around $76,820, down 4.1% on the day, according to Decrypt data cited in the source.

Stand With Crypto reports a majority of wins

Mason Lynaugh, executive director of Stand With Crypto, said in a statement shared with Decrypt that the group was proud to see a majority of its endorsed candidates win.

He thanked candidates who would not return to Washington for supporting crypto-owning Americans. The group also shared examples from close races, including Darren Soto in Florida's 9th District, who it said won by 1,477 votes.

What analysts say about the Clarity Act

The Clarity Act aims to set rules for crypto markets. It has moved back and forth since 2025, the source said.

James Butterfill, head of research at CoinShares, described Republican Bryan Steil's loss as a meaningful loss for crypto. Steil chaired the House digital assets subcommittee and worked closely on efforts to advance the Clarity Act, which stalled in the Senate earlier this year.

Butterfill also pointed to winners who have supported crypto policy. They included Democrats Chris Pappas in New Hampshire, James Talarico in Texas, and Wyoming Republican Harriet Hageman. He said the challenge is now turning that support into passed legislation.

Carlos Guzman, vice president of research at GSR, told Decrypt that passing the Clarity Act has become tougher but is not over. He said some Democrats support clearer crypto rules, but he would not expect it to be high on their agenda.

Guzman also said any agreement would likely need stronger provisions on consumer protection and conflicts of interest. Democrats have raised concerns about conflicts of interest linked to President Trump's crypto involvement. Sen. Elizabeth Warren has pushed for a ban on officials and their families profiting from the sector.

What is confirmed and what is still unclear

Confirmed from the source: Stand With Crypto's tracker numbers, the analysts' comments to Decrypt, and the midterm results described.

Reported but not fully confirmed: the House Democrats' plan to expand the bill. The source cites Terrett's reporting and unnamed sources for details about SEC and CFTC roles.

Still unclear: whether the expanded bill will advance, and how any final version would divide authority between regulators.

Why this matters for crypto policy

Analysts in the source said the election does not automatically replace the leadership of the SEC or CFTC or stop their rule-making. Guzman said congressional oversight changes, which could bring more scrutiny of regulatory decisions.

Butterfill said crypto policy may become less dependent on the Clarity Act if the SEC and CFTC push for clarity without Congress. He also said AI regulation could draw attention away from crypto and slow crypto policy work.

Sources

• Decrypt

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