House Democrats are discussing a crypto market structure bill that could rebalance federal oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), according to journalist Eleanor Terrett. Terrett reported on November 4, citing three industry sources who had spoken with Democratic staffers, that the proposal could expand Representative Maxine Waters’ Crypto Investor and Consumer Bill of Rights, a 2025 amendment to the CLARITY Act.

The preliminary discussions concern the next Congress and could combine Waters’ consumer safeguards with provisions developed during earlier, bipartisan Senate negotiations. Democrats are considering stronger SEC supervision and a narrower CFTC remit, although the reported talks have not resolved how jurisdiction would be divided. Terrett did not report draft legislative language or a confirmed introduction date. Blockonomi reported the discussions.

Waters’ Consumer Protections Could Return

The proposal could incorporate House Democratic provisions alongside measures negotiated across party lines in the Senate before a September vote blocked further consideration of the CLARITY Act.

SCOOP: House Democrats are discussing plans to expand the Crypto Investor and Consumer Bill of Rights, @RepMaxineWaters ’ amendment to the Clarity Act in 2025, into a broader crypto “market structure” bill next Congress. The proposal would fold in Democratic Clarity Act… — Eleanor Terrett (@EleanorTerrett) November 4, 2026

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In 2025, Waters sought customer protections covering withdrawals, asset custody and exchange conduct. Her amendment proposed continuous customer support, insurance or comparable coverage modeled on securities investor protection, and monthly reserve attestations from auditors. The proposed rules would also have required customers to receive access to withdrawals within 24 hours.

The amendment called for restrictions on trading ahead of customer orders and custody arrangements designed to protect client assets during bankruptcy. It also sought funding for the SEC and CFTC. House records show that a motion to allow consideration of the amendment failed by eight votes to four, preventing those protections from advancing through that amendment.

Any crypto market structure bill would need to be introduced again in the next Congress. Legislation that remains unfinished does not carry over between Congresses, even when lawmakers have already negotiated portions of its text. Sponsors may reuse those provisions, but the bill would still have to pass through the legislative process.

Potential Ethics Restrictions for Officials

The ethics provisions have a separate legislative history. Waters introduced the Stop TRUMP in Crypto Act in May 2025 with committee Democrats. The measure targeted crypto-related business roles, promotional activities and trading involving material nonpublic information.

The earlier bill covered the president, vice president, members of Congress and their immediate families. Terrett reported that additional restrictions on federal officials were likely but did not specify their scope. Whether the market structure bill includes those safeguards will depend on its eventual language. The current discussions do not determine which businesses or digital assets would face new requirements.

Senate Vote Left CLARITY Act Stalled

The proposed legislation could expand SEC oversight while limiting the CFTC’s role. Terrett reported that Republicans were characterizing the effort as a messaging bill.

The Senate failed to advance the CLARITY Act on September 15. The official roll call recorded 49 votes in favor of cloture and 50 against, fewer than the three-fifths majority required. The vote addressed whether to begin consideration of the legislation; it was not a final vote on passage.

Democrats gained control of both congressional chambers in the November 3 elections, Reuters reported. The incoming majorities could give Democrats greater influence over hearings, committee priorities and legislative scheduling. Passing a market structure bill would still require agreement between the House and Senate, followed by action by the president. President Donald Trump retains the authority to veto legislation, creating an additional hurdle for proposals that target officials’ financial activities.

Separately, SEC staff revised crypto guidance on November 2. The update addressed network governance and circumstances that could indicate central control, distinguishing a functioning blockchain system from one that meets the relevant decentralization criteria. The agency said the answers reflected staff views and carried no legal force. The Commission neither approved nor disapproved the guidance, and the update created no additional obligations.

Until draft language or a confirmed introduction date emerges, the scope of any changes to SEC and CFTC jurisdiction, consumer safeguards and ethics restrictions remains unresolved.