House Democrats Prepare New Crypto Legislation to Expand SEC Regulatory Authority

House Democrats are preparing a new cryptocurrency legislative package following the 2026 U.S. midterm elections to overhaul digital asset market structure and expand investor protections. The proposal seeks to expand Representative Maxine Waters' Crypto Investor and Consumer Bill of Rights, granting broader supervisory authority to the Securities and Exchange Commission while curtailing the jurisdiction of the Commodity Futures Trading Commission. This initiative follows the stalling of the earlier Republican-backed CLARITY Act in the Senate. Despite new regulatory hurdles, advocacy group Stand With Crypto noted more than 50 newly elected pro-crypto candidates secured congressional seats, underscoring the need for bipartisan compromise.