It is reported that after the mid-term elections in the United States, Democrats in the House of Representatives are actively discussing plans to introduce a comprehensive cryptocurrency market structure bill in the upcoming new Congress session. Cryptocurrency journalist Eleanor Terrett stated that the discussions include expanding on the "Cryptocurrency Investors and Consumers Rights Act" previously proposed by Representative Maxine Waters.
The plan will also incorporate some of the provisions previously proposed by Democrats during the negotiations surrounding the CLARITY Act.
The Democratic Party may introduce a new encryption bill
Eleanor Terrett posted on platform X that Democrats in the House of Representatives are discussing expanding Representative Maxine Waters's "Cryptocurrency Investors and Consumers Rights Act" into a broader cryptocurrency regulation bill. The proposal may be introduced when the new Congress begins on January 3, 2027.
Waters first proposed this bill in 2025, with the aim of providing better protection for crypto investors and establishing clearer rules for the industry.
Currently, Democrats are considering using this proposal as a basis to establish a broader regulatory framework.
SEC will gain even more power under this proposal.
One of the major changes being discussed involves the division of powers between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
According to this proposal, SEC may gain more power to oversee encrypted transactions and market activities, while the role of CFTC may be relatively reduced.
This is different from the demands that have always been made by the crypto industry, as many companies prefer that CFTC have greater control over the crypto market. When Congress begins to discuss this new bill, disagreements may arise between the two parties on this issue.
Trump's crypto business may face new restrictions
Another important aspect of the discussion is the ethical requirements for elected officials and their immediate family members. The proposed rules may prohibit senior government officials from founding, promoting, or profiting from cryptocurrency businesses while holding public office.
In May 2025, Waters proposed the "Stop Trump's Involvement in Cryptocurrency Act" ( Stop TRUMP in Crypto Act ) to restrict certain cryptocurrency activities involving government officials and their families.
After reports that Trump's cryptocurrency business made a profit of about $1.4 billion, this issue has come to attention. Democrats hope to examine more closely the family's interests in cryptocurrencies and any potential conflicts of interest involved.
The Republican Party calls it the "Information Dissemination Act"
It is reported that Republicans refer to this proposed bill as an "information transmission bill" ( messaging bill ). They believe that the bill is aimed at Trump's crypto business, rather than establishing a set of rules that could gain bipartisan support.
As the Democratic Party takes control of both chambers of Congress, this proposal may demonstrate how the new Congress will handle encryption regulation issues.
At the time this proposal was introduced, Bitcoin had rebounded above $81,000. Meanwhile, the crypto market experienced a margin call of nearly $987.33 million within 24 hours, of which short positions accounted for $566.59 million, representing 57.4% of the total.
