According to Coinpedia, House Democrats are discussing plans to turn Waters' Crypto Investor and Consumer Bill of Rights — introduced in 2025 as an amendment to the CLARITY Act — into a broader market-structure bill for the new Congress beginning January 3, 2027.

Bloomingbit, citing Solid Intel, reports the proposal would fold in Democratic CLARITY Act provisions that failed to advance in September, including stronger SEC authority over digital-asset markets.

Eleanor Terrett first reported the talks on X on November 4, describing three industry sources who shared details with Democratic staff.

The industry spent years lobbying for the Commodity Futures Trading Commission to take the lead on crypto.

Under the plan Coinpedia describes, the SEC could instead gain more power to oversee crypto trading and market activity while the CFTC gets a smaller role — the opposite of what many companies prefer. Coinpedia notes the two sides could clash over this question once Congress begins debate.

A second pillar would restrict crypto business activities involving federal officials and their immediate families.

Coinpedia reports the proposed rules may bar senior officials from starting, promoting, or profiting from crypto businesses while in office, building on Waters' Stop TRUMP in Crypto Act from May 2025.

The push follows reports that Trump's crypto businesses earned roughly $1.4 billion, and Democrats want a closer look at the family's crypto interests and potential conflicts of interest.

Bloomingbit confirms that measures restricting Trump's crypto-related business activities are part of the effort.

Republicans have reportedly dismissed the planned legislation as a 'messaging bill,' arguing it targets Trump's crypto businesses rather than producing rules both parties can support, according to Coinpedia.

The rebuttal matters because even with Democratic control of both chambers after the sweep, the bill's SEC-heavy division of authority faces resistance from an industry that lobbied hard for CFTC primacy.

OneBullEx adds context: Wall Street's tokenization and stablecoin programs continue under existing SEC and CFTC frameworks, so the bill's real impact falls on the broader crypto market structure that remains legally unsettled.

The proposal signals how Democrats intend to shape crypto regulation after taking control of both chambers, with a possible introduction once the new Congress begins on January 3, 2027.

Meanwhile the market backdrop is volatile: Coinpedia reports Bitcoin recovered above $81,000 while nearly $987.33 million in liquidations hit over 24 hours, with shorts accounting for $566.59 million of that.