House Democrats are preparing to expand Congresswoman Maxine Waters’ Crypto Investor Consumer Bill of Rights into a broader market structure bill, seeking to strengthen the Securities and Exchange Commission’s role in regulating the crypto sector. The proposed legislation would limit the Commodity Futures Trading Commission’s involvement, according to sources close to the matter.
Election results shape crypto policy
Following the U.S. midterm elections, the makeup of Congress is shifting crypto legislative priorities. Although President Donald Trump’s administration is widely viewed as more receptive to digital assets, recent outcomes suggest a changing landscape. Industry observers suggest crypto issues may now attract bipartisan attention in Congress.
Advocacy group Stand With Crypto endorsed 45 candidates in the midterms, with election tracker data showing 27 victories, 12 losses, and six undecided races. Nearly half of those endorsed by the organization were Democrats, pointing to a wider dispersion of pro-crypto sentiment across party lines.
Stand With Crypto’s executive director Mason Lynaugh stated that seeing the majority of their endorsed candidates win was a point of pride, while also expressing gratitude to those who advocated for crypto policy even if they will not return to Washington.
In several close races, pro-crypto candidates achieved narrow wins. For example, Darren Soto secured Florida’s 9th District by only 1,477 votes, highlighting the mobilization efforts by advocacy groups in key regions. Over 50 new pro-crypto members are expected to enter Congress as a result of the election.
Legislative hurdles for the Clarity Act
The path forward for the Clarity Act, which aims to set out clear rules for crypto markets, has become more complex. Republican Bryan Steil, previously chair of the House digital assets subcommittee, was defeated, described by CoinShares’ head of research James Butterfill as a “meaningful loss” for digital asset legislation. Steil was a central figure in efforts to advance the Clarity Act, although the bill previously stalled in the Senate.
Despite this, several supportive lawmakers retained their seats. Democrats Chris Pappas of New Hampshire and James Talarico of Texas, along with Wyoming Republican Harriet Hageman, have remained active on crypto issues. Butterfill noted that the next challenge is translating this political support into concrete legislative action, which could prove difficult as priorities shift.
Carlos Guzman, vice president of research at crypto trading firm GSR, observed that passing the Clarity Act has become more challenging, though he does not see the measure as dead. He commented that further progress would likely require stricter provisions addressing consumer protection and conflict of interest concerns.
The Clarity Act has been under debate since 2025, with Democrats raising concerns about former President Trump’s financial connections to the crypto industry. Senator Elizabeth Warren has pushed for stronger restrictions, including a ban on officials and their families profiting from digital assets.
Guzman noted that changes in Congress do not automatically bring new leadership to agencies such as the SEC or CFTC, nor do they immediately halt regulatory initiatives. However, increased Congressional scrutiny could affect agency funding, regulatory actions, and upcoming appointments.
Butterfill also pointed out that, increasingly, the crypto industry is looking beyond the Clarity Act for regulatory advancement. Both the SEC and CFTC continue to shape policy, while topics like artificial intelligence are attracting growing attention from lawmakers, potentially slowing progress on crypto initiatives.
Bitcoin volatility and outlook
After the elections, Bitcoin experienced a drop in price, trading near $76,820 at a 4.1% decline for the day, according to recent market data. The ongoing political uncertainty appears to have influenced the latest price movements and contributed to increased volatility in digital asset markets.
Butterfill remarked that the election results alone have not altered his broader perspective on Bitcoin. While slower legislative reform could delay some institutional participation, he expects the most significant impact to be felt by US crypto businesses awaiting new regulatory permissions.
With Bitcoin experiencing heightened volatility amid regulatory uncertainty, tools like CryptoAppsy can help investors stay updated in real time. Its live charting and smart price alerts enable users to track rapid market shifts and regulatory developments as they unfold, ensuring timely and informed decisions in a dynamic environment.
