House Democrats Prepare Market Structure Bill Expanding Waters Proposal

House Democrats have begun discussions to expand Representative Maxine Waters' Crypto Investor and Consumer Bill of Rights into a comprehensive digital asset market structure bill for the upcoming Congress, according to reporting cited by Decrypt ¹. The prospective legislation would seek to incorporate Democratic revisions to the CLARITY Act that were rejected in 2025, alongside terms previously agreed to by bipartisan Senate negotiators prior to a failed September cloture vote ¹. Waters is positioned as the incoming chair of the House Financial Services Committee, signaling a push toward legislative drafting rather than exploratory hearings ¹.

Under the framework being considered by lawmakers, regulatory jurisdiction would shift toward the Securities and Exchange Commission, reducing the oversight mandate originally designated for the Commodity Futures Trading Commission ¹. The draft also incorporates ethics provisions that would restrict the cryptocurrency holdings and activities of federal officials, including Donald Trump ¹. These requirements reflect long-standing Democratic priorities that previously complicated bipartisan consensus before the midterm elections, as explored in recent coverage on Democrats securing a Senate majority ¹.

Market Impact and Next Steps

The legislative reset follows a volatile trading window following the midterm election results. $BTC fell below $76,000 on Tuesday before climbing above $80,800 on Wednesday, alongside an 8% drop in WTI crude oil prices to $88 per barrel ¹. At the time of writing, $BTC traded at $79,591 and $ETH stood at $2,386. U.S. exchange-traded funds reversed an outflow streak on Wednesday, drawing $74 million in net inflows for spot Bitcoin funds and $53 million for spot Ethereum funds ¹.

Proponents aim to advance the revised proposal during the legislative session in 2027 ¹. The bill must navigate committee hearings and floor votes in both chambers once the new Congress convenes, with regulatory jurisdiction and executive ethics mandates remaining central friction points ¹.