Democrats in the U.S. House of Representatives are reportedly discussing a new bill that could expand the SEC’s authority over crypto and impose ethical restrictions on crypto activities by federal officials, including President Donald Trump.
According to a report by journalist Eleanor Terrett, based on three industry sources, cited by Wu Blockchain, Democrats are considering introducing a more comprehensive crypto market structure bill in the next Congress. The plan under discussion would put the question of which agency has authority over crypto, and to what extent, back on the table.
The proposal could be built around an amendment that Representative Maxine Waters offered to the CLARITY Act in 2025 concerning the rights of crypto investors and consumers. Democratic proposals previously rejected in the House, as well as measures that senators from both parties agreed on before the procedural vote in September, could also be included in the text.
SEC could gain more authority over crypto
One option under discussion is to expand the oversight of the U.S. Securities and Exchange Commission (SEC) over crypto markets. In contrast, limiting the role of the Commodity Futures Trading Commission (CFTC) is being considered.
This approach matters in terms of how regulatory authority over crypto assets and companies operating in the sector would be divided between the two agencies. It remains unclear what provisions the plan, which is still under discussion, would include.
Trump’s crypto activities also on the table
Possible additions to the bill also include ethical restrictions on crypto activities by Trump and other federal officials. Republicans, meanwhile, have characterized the proposal as a bill intended to make a political statement.
The plan comes amid discussions about the future of the CLARITY Act following the election. Earlier assessments focused on the chances of the current bill passing, while this time the alternative being discussed by Democrats puts the division of authority and options concerning public officials’ crypto activities in the spotlight.
Not investment advice.