House Democrats are developing their own framework for crypto regulation, according to reporter Eleanor Terrett, aiming to reshape federal oversight.

Overview

The proposal would strengthen the role of the SEC and reduce oversight authority held by the CFTC over crypto markets.

It would introduce additional restrictions on crypto entities affiliated with Trump and other federal officials, including tighter disclosure and conflict rules.

Legislative basis

Lawmakers plan to base the House measure on Maxine Waters's amendments to the CLARITY Act, which were rejected in 2025.

They also intend to incorporate provisions that senators from both parties previously agreed upon during earlier negotiations.

Timeline and process

Supporters aim to advance the initiative in the next Congress when the new session convenes on 03.01.2027.

They plan to pursue committee consideration and floor debate during the early months of that legislative term.

Regulatory context

The SEC, as the primary securities regulator, and the CFTC, which oversees derivatives and commodities, have overlapping interests in crypto supervision.

Reporting

Eleanor Terrett reported these internal Democratic discussions to news organizations, citing lawmakers and staff involved in drafting the proposals.

Draft focus

Draft language reportedly emphasizes clarifying jurisdiction between agencies, strengthening disclosure rules, and setting ethical standards for officials' crypto engagements.