US House Democrats Reportedly Drafting New Crypto Bill to Expand SEC Authority; CLARITY Act Faces Lapse
Reports indicate US House Democrats are discussing a new crypto market structure bill that would expand the SEC's regulatory role and limit the CFTC, while adding ethics clauses for officials. The original CLARITY Act may expire in January 2027 if not passed.
According to reports by crypto journalist Eleanor Terrett, US House Democrats, having secured control of both chambers after the midterms, are discussing a new cryptocurrency market structure bill. The proposal aims to expand the regulatory powers of the Securities and Exchange Commission (SEC) and limit the role of the Commodity Futures Trading Commission (CFTC).
The new bill may be based on Rep. Maxine Waters' previous 'Crypto Investor and Consumer Bill of Rights,' incorporating ethics clauses regulating federal officials' involvement in crypto ventures. The plan is currently in the discussion stage with no formal text released.
Meanwhile, the Republican-led Digital Asset Market Clarity Act (CLARITY Act) has stalled in the Senate. If it is not revived before the end of the current Congress, the bill will expire on January 3, 2027. Analysts suggest that the Democrats' new direction complicates the industry's path to unified federal rules.