Following their victory in the US midterm elections, Democrats, who gained power in both the House of Representatives and the Senate, may be preparing to make a move regarding cryptocurrencies.
At this point, Democrats are actively discussing plans to introduce a comprehensive cryptocurrency market structure bill in the next legislative session beginning in 2027.
According to a post on her X account, US crypto journalist Eleanor Terrett stated that Democrats are discussing plans to transform the Crypto Investor and Consumer Rights Act, previously proposed by Representative Maxine Waters to be added to the Clarity Act, into a broader crypto regulatory law.
Know when your
coins move
This proposal could be introduced when the new Congress takes office on January 3, 2027.
According to Terrett, citing conversations with three industry sources and Democratic staff, the new bill could combine investor protection rules previously introduced by Waters with changes Democrats discussed with Republicans before the Clarity Act stalled in September.
At this point, Waters had originally introduced this bill in 2025 with the aim of providing better protection for crypto investors and establishing clearer rules for the sector. Democrats are now considering using this proposal as a basis for a broader regulatory framework.
SEC’s Powers Could Be Expanded!
Eleanor Terrett also stated that Democrats plan to include in the new bill provisions that were previously rejected under the CLARITY Act and those agreed upon during Senate deliberations. Options under consideration include increasing the SEC’s powers in overseeing the crypto market and limiting the CFTC’s role.
In addition to increasing the SEC’s powers, there are also plans by US President Donald Trump and other federal officials to introduce stricter ethical rules regarding cryptocurrency activities.
Hunter Biden Evaluates!
As discussions continue about the Democrats’ victory and the future of important legislation like the Clarity Act, Hunter Biden, son of former US President Joe Biden, has launched a scathing attack on Trump.
Speaking to Coindesk, Hunter Biden said that the CLARITY Act failed because President Donald Trump rejected an ethics clause. He stated that the sole reason the CLARITY Act didn’t pass was because Trump refused to approve an ethics clause.
Hunter Biden added that if Trump had approved the ethics clause, more Democratic lawmakers would have supported the bill, and the U.S. SEC or CFTC could have provided far more transparency than they currently do.
At this point, the Democrats gaining a majority in both the Senate and the House of Representatives following the US midterm elections has created a new political landscape regarding the future of the CLARITY Act. However, if the current bill fails to reach 60 votes to overcome a potential blockage in the Senate, it will expire on January 3, 2027, when the new Congress begins.
In this case, the legislation will need to be reintroduced and supported by a new political consensus in order to continue the legislative process. However, securing the support of both Democrats and Republicans will be critical for it to pass the Senate.
*This is not investment advice.
