Crypto Market Structure Bill Puts SEC Oversight Back in Focus

House Democrats are discussing a crypto market structure bill for the next Congress, according to a report citing three industry sources. The proposal could expand the SEC’s role relative to the CFTC and revive investor protections from Representative Maxine Waters’ 2025 amendment to the CLARITY Act. The crypto market structure bill remains preliminary, with no formal text or introduction reported. Waters’ amendment proposed 24-hour withdrawal or transfer processing, continuous customer support, bankruptcy-remote custody, limits on reusing customer assets without consent, and monthly cryptographically verifiable proof-of-reserves backed by an accountant’s attestation. The House Rules Committee rejected a motion to consider the amendment 4–8; this was not a vote on a standalone bill. Democrats are also considering ethics restrictions on crypto activities by President Donald Trump and other federal officials. The discussions may draw on proposals negotiated by senators from both parties before the CLARITY Act’s September procedural vote, which failed 49–50, short of the 60 votes required to advance but did not finally reject the legislation. Republicans have described the broader proposal as a “messaging bill.” The outcome remains uncertain, leaving US crypto regulation and its potential market effects unresolved.