Key facts
- The proposal would expand SEC oversight of crypto markets and restrict CFTC authority, unlike the House-passed bill.
- Waters' 2025 measures included isolating customer funds, 24-hour withdrawal processing and monthly audited proof of reserves.
- Democrats are also weighing limits on digital-asset transactions by President Donald Trump and other federal officials.
- Republicans have characterized the plan as a messaging bill, per Terrett, and no full draft is available.
- Waters could return to chair the House Financial Services Committee, though leadership decisions remain pending.
- Ripple CEO Brad Garlinghouse called for clear rules built in America after pro-crypto candidates won in both parties.
House Democrats are discussing a crypto market structure bill that would expand the Securities and Exchange Commission's oversight of digital-asset markets and restrict the Commodity Futures Trading Commission's authority, journalist Eleanor Terrett reported on November 4, 2026. No bill has been introduced. Three industry sources who spoke with Democratic staffers described the discussions, Terrett reported.
The approach differs from the bill the House passed, which gave the CFTC primary jurisdiction over digital commodities and intermediaries. Democrats are also weighing limits on cryptocurrency transactions by President Donald Trump and other federal officials. Waters previously proposed a Stop TRUMP in Crypto Act that would limit some digital-asset transactions by members of Congress and relatives. Those agreements have not been reached in the most recent negotiations, and the SEC-CFTC division and the ethics provisions have not been completed.
In 2025, Waters proposed investor protections while the House considered the CLARITY Act, but the amendments were not adopted. Her suggestions included isolating customer funds, 24-hour withdrawal processing, monthly proof of reserves presented by an auditor, protection from front-running and 24/7 customer support. The new effort might include some measures Senate Democrats and Republicans negotiated before a failed procedural vote in September 2026, when the Senate fell short of the 60 votes required to move to debate on the House-passed bill.
Democrats won the House and Senate in the November 3 midterms, changing who will lead crypto legislation. Waters could return to chair the House Financial Services Committee, although leadership decisions remain pending. Republicans have characterized the new plan as a messaging bill, Terrett said. The conversations concern bills for the next Congress, which starts in January 2027.
Ripple CEO Brad Garlinghouse said pro-crypto candidates won in both parties and called for clear rules built in America. Ripple chief legal officer Stuart Alderoty supported cooperation across party lines and urged lawmakers to continue developing digital-asset regulations. Newly elected pro-crypto lawmakers include Democrats and Republicans who have previously supported digital-asset legislation, though neither party has announced a timetable for the proposed bill, and the CLARITY Act remains without a scheduled Senate vote.