Democrats reportedly plan broader crypto market structure bill after US midterm sweep

House Democrats reportedly plan to advance crypto legislation after sweeping the US midterm elections. Journalist Eleanor Terrett reported plans to turn the Crypto Investor Consumer Bill of Rights into a broader crypto market structure bill. The Bill of Rights is an amendment to the Clarity Act led by Democrat Maxine Waters. Sources told Terrett that the broader proposal would increase the SEC's authority over crypto markets and reduce the CFTC's role.

The election results could appear unfavorable for US crypto policy because President Trump's Republican administration was widely considered supportive of crypto, while Democrats were viewed as more hostile. However, experts said crypto policy might be becoming more bipartisan. Stand With Crypto's election tracker recorded 27 wins, 12 losses and six unresolved races among the advocacy organization's 45 endorsed candidates. Democrats accounted for nearly half of the candidates endorsed by Stand With Crypto. Stand With Crypto executive director Mason Lynaugh welcomed the majority of endorsed candidates winning and thanked departing candidates for supporting Americans who own crypto.

CoinShares head of research James Butterfill called Wisconsin Republican Bryan Steil's defeat a significant loss for crypto. Steil chaired the House digital assets subcommittee and played a close role in efforts to advance the Clarity Act. The Clarity Act stalled in the Senate earlier this year, blocking those efforts. Butterfill also identified Democratic winners Chris Pappas in New Hampshire and James Talarico in Texas, and Republican winner Harriet Hageman in Wyoming, as supporters of crypto policy. Butterfill said the challenge now was translating that support into enacted legislation.

GSR vice president of research Carlos Guzman said the Clarity Act still had a chance, although passage had become more difficult. Guzman said some Democrats favored clearer crypto rules, but Guzman did not expect those rules to rank high among Democratic priorities. Guzman said any agreement would probably need stronger safeguards addressing consumer protection and conflicts of interest. The Clarity Act seeks to set rules for crypto markets and has undergone repeated legislative debate since 2025. Democrats have opposed the bill over concerns about Trump's crypto conflicts of interest. Massachusetts Democratic Senator Elizabeth Warren has sought provisions prohibiting officials and officials' families from making profits from the sector.

Guzman said the election would not automatically change SEC or CFTC leadership or halt either agency's rulemaking. However, Guzman said changes to congressional oversight could bring closer examination of regulatory decisions. Guzman said Democrats would also be able to affect agency funding and future appointments. Butterfill said crypto was becoming less reliant on the Clarity Act because the SEC and CFTC were pursuing clearer regulation without congressional action. Butterfill said attention to AI regulation could divert attention from crypto and slow crypto policymaking.

Bitcoin has experienced volatility following the midterms. Decrypt data put Bitcoin near $76,820, a daily decline of 4.1%. Butterfill said the election outcome alone would not prompt a change in Butterfill's medium-term Bitcoin outlook. Butterfill said slower reform could postpone some institutional activity, but Butterfill expected US crypto businesses needing new regulatory permissions to face the more direct effects. Butterfill said CoinShares would reconsider the outlook if political uncertainty significantly reduced investment flows or tightened financial conditions.