House Democrats Draft Crypto Bill Expanding SEC Oversight

House Financial Services Committee Democrats are drafting a crypto market structure bill that would expand the Securities and Exchange Commission's supervisory powers over crypto markets and intermediaries while narrowing the Commodity Futures Trading Commission's role, according to Crypto Briefing, which cited industry sources familiar with the discussions.

The outlet reported the emerging framework would include customer protection measures covering fund withdrawal procedures and platform security breach protocols, and would also address the crypto business activities of President Trump and other federal officials. The effort is described as building on Rep. Maxine Waters' 2025 "Crypto Investor and Consumer Protection" proposal, an amendment the Rules Committee blocked by a divided vote.

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Crypto Briefing noted the House passed the Clarity Act in July 2025 by a lopsided margin, but that bill stalled in the Senate, where passage generally requires clearing a 60-vote threshold. The report said drafters are targeting the next Congress, which convenes in 2027, as the window to convert current discussions into formal legislation.

The outlet also reported that Stand With Crypto, an industry-aligned group, backed 27 candidates heading into the 2026 midterm races; twelve of those candidates lost and six races remained pending at the time of reporting. According to Crypto Briefing, it remains unclear whether formal bill text will surface once the new Congress convenes, whether it will closely track the earlier Waters amendment, or whether the ethics provisions tied to Trump's crypto dealings will harden partisan opposition.