House Democrats Plot Broader Crypto Market Structure Bill After Midterm Wins

House Democrats are discussing plans to expand the Crypto Investor and Consumer Bill of Rights — Representative Maxine Waters' 2025 amendment to the Clarity Act — into a broader crypto market structure bill in the next Congress, journalist Eleanor Terrett reported on November 4. The proposal would give the SEC more power to supervise crypto markets and limit the CFTC's role, sources told Terrett.

The plans follow midterm results that, on the surface, look like a setback for crypto policy in Washington. President Trump's Republican administration has been widely seen as the pro-crypto party, with Democrats viewed as more hostile. But analysts say the tide may be turning, with crypto policy evolving into a more bipartisan issue.

How did crypto candidates fare?

Stand With Crypto endorsed 45 candidates in the midterms, according to its election tracker. The results at the time of writing:

• 27 endorsed candidates won their races
• 12 lost
• 6 races remained too close to call
• Nearly half of the endorsed candidates were Democrats

"We're proud to see a majority of our endorsed candidates win their elections," Mason Lynaugh, executive director of Stand With Crypto, said in a statement. "To the candidates who won't return to Washington, thank you for going to bat for crypto-owning Americans when it counted." The group also counted more than 50 pro-crypto new members heading to Congress, and highlighted Florida's 9th District, where Darren Soto won by 1,477 votes.

What happens to the Clarity Act?

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

Butterfill also pointed to winners with pro-crypto records: Democrats Chris Pappas in New Hampshire and James Talarico in Texas, plus Wyoming Republican Harriet Hageman. The challenge now, he said, is "converting" that support into passed legislation.

"I wouldn't say it's game over for Clarity, but passing it has become tougher," Carlos Guzman, vice president of research at trading firm GSR, said. "Some Democrats support clearer crypto rules, but I wouldn't expect it to be high on their agenda. Any agreement will likely require stronger provisions on things like consumer protection and conflicts of interest."

The Clarity Act has bounced between chambers since 2025. Democrats have opposed it citing Trump's crypto conflicts of interest, with Senator Elizabeth Warren of Massachusetts pushing to ban officials and their families from profiting from the sector.

What changes at the agencies?

The election does not automatically replace the leadership of the SEC or CFTC, nor stop their rulemaking, Guzman noted. Congressional oversight does change, however — Democrats can now influence agency funding and future appointments, and analysts expect sharper scrutiny of regulatory decisions.

Butterfill argued crypto is becoming less dependent on the Clarity Act, as the SEC and CFTC pursue regulatory clarity without Congress. He also flagged AI regulation as a competitor for legislative attention that could slow crypto policymaking further.

Bitcoin traded around $76,820 on November 4, down 4.1% on the day, per Decrypt data. "The result alone would not make me change my medium-term Bitcoin outlook," Butterfill said, adding that the more direct impact would fall on US crypto businesses reliant on new regulatory permissions.

Any expanded Waters bill would face its first test when the new Congress convenes and committee assignments settle in January.