Report: Democrats Considering New Crypto Market Structure Bill

After midterm gains, House Democrats are discussing a broader crypto market-structure bill that would expand Rep. Maxine Waters’ Crypto Investor and Consumer Bill of Rights, a 2025 amendment to the CLARITY Act. The measure would combine Democratic provisions previously left out with ones Republicans accepted before a failed September Senate vote to end debate. It would give the SEC a larger oversight role and the CFTC a smaller one, reversing the CLARITY Act’s CFTC-led approach to spot markets, and could add ethics restrictions on crypto activities by President Donald Trump and other federal officials. Consumer protections would include stricter custody rules, monthly proof-of-reserve attestations confirming customer holdings, SIPC-like brokerage-style coverage, 24/7 service and limits on firms trading against customers.