House Democrats are crafting a crypto bill that would boost SEC oversight and target Trump's crypto earnings, but Republican opposition looms.
House Democrats are working on a crypto bill that would expand the SEC's authority over exchanges and potentially impose stricter constraints on Donald Trump's crypto ventures.
Following their victory in both chambers of Congress on Tuesday, Democrats may introduce stricter regulations for exchanges, their users, and Trump's family businesses starting January. Republicans, however, are skeptical about the proposal's chances.
Eleanor Terrett, host of the Crypto America podcast, was briefed by three industry sources who outlined the Democratic staffers' plans. A formal bill has not been drafted.
đšSCOOP: House Democrats are discussing plans to expand the Crypto Investor and Consumer Bill of Rights, @RepMaxineWatersâ amendment to the Clarity Act in 2025, into a broader crypto âmarket structureâ bill next Congress.
The proposal would fold in Democratic Clarity ActâŠâ Eleanor Terrett (@EleanorTerrett) November 4, 2026
The foundation is the 2025 Crypto Investor and Consumer Bill of Rights, authored by Rep. Maxine Waters. According to House Rules Committee records, the bill was prevented from reaching a floor vote by a 4â8 margin.
Crypto exchanges would be mandated to provide round-the-clock customer support, insurance-like protection, and the ability to withdraw funds within a day. Additionally, they would need to release monthly proof-of-reserves audits verifying that customer assets are held.
Terrett reported that the SEC would assume a larger oversight function, while the CFTC, responsible for derivatives, would have a reduced role.
Crypto exchanges are familiar with the SEC's regulatory stance. In June 2023, the agency filed charges against Coinbase for operating as an unregistered securities exchange, broker, and clearing agency.
Democratic lawmakers are expected to introduce ethics provisions that would limit crypto-related activities of Trump and other government officials.
Disclosures cited by AFP indicate that Trump generated roughly $1.2 billion from cryptocurrency in 2025, with approximately $550 million from World Liberty Financial, his family's crypto venture. The White House has denied any conflict of interest.
The CLARITY Act, an industry-supported bill that would split regulatory oversight, was previously stalled by ethics disputes. It fell short in a 49â50 Senate vote last September.
According to Terrett, Republicans view the proposal as a 'messaging bill.' Any legislation would require 60 Senate votes and the president's approval.
BeInCrypto reported on Wednesday that if CLARITY were to stall, Democrats would restart the crypto bill process. Later that day, Terrett's sources indicated that this reset was already in motion.
Waters, who is poised to chair the House Financial Services Committee, called for stronger regulations following the $6.3 billion Binance hack last month.
âAmericans deserve to know their money is safe,â Waters said.
Should CLARITY fail to advance this year, the industry's favored legislation will encounter a Democratic alternative in January.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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