The Democratic Party plans to promote the CLARITY Act to expand SEC regulatory authority

Crypto journalist Eleanor Terrett posted on social media that, according to three industry insiders who spoke with Democratic staffers, House Democrats are discussing a plan to expand the "Crypto Investor and Consumer Rights Act" into a broader crypto market structure bill for the next Congress. This bill is an amendment to the "CLARITY Act" proposed by Congresswoman Maxine Waters in 2025.

The proposal will incorporate provisions from the Democratic "CLARITY Act" that Waters initially introduced in the House but did not pass, as well as terms agreed upon by Senate Democrats and Republicans before the procedural vote in September. Current discussions include granting the U.S. Securities and Exchange Commission a greater role in overseeing the crypto market, while the role of the U.S. Commodity Futures Trading Commission would be relatively limited.

Insiders also stated that the relevant proposal is likely to include further ethical provisions to restrict crypto activities by President Trump and other federal officials. Republicans refer to this proposal as an information bill, indicating that it primarily serves to convey a political stance and lacks practical feasibility.