United States House Democrats are preparing a comprehensive digital asset market structure proposal aimed at strengthening consumer safeguards and substantially expanding the oversight authority of the Securities and Exchange Commission. According to industry sources and reporting by journalist Eleanor Terrett, the emerging legislative framework seeks to recalibrate regulatory boundaries by elevating the SEC’s enforcement role over crypto intermediaries while curtailing duties previously targeted for the Commodity Futures Trading Commission.
The draft measure builds largely on Representative Maxine Waters’ prior investor-protection proposals, which sought to establish binding statutory rights for retail cryptocurrency traders. Waters’ previous 2025 amendment outlined rigorous operational mandates for trading platforms, including a strict 24-hour deadline for executing customer withdrawals, monthly certified accountant attestations for cryptographic proof of reserves, and the mandatory segregation of customer assets in bankruptcy-remote accounts. It also prohibited platforms from allowing affiliated market makers to trade against their own clients and required affirmative consent prior to lending or staking customer funds.
The renewed push comes after the Senate failed to advance the bipartisan CLARITY Act on September 15, falling short in a 49-50 cloture vote. Although that compromise incorporated over 120 Democratic amendments addressing ethics disclosures and stablecoin safeguards, deep partisan divisions endured over the jurisdictional divide between the SEC and the CFTC, as well as ethics rules governing federal officials.
Enacting the Democrats’ revised framework faces steep hurdles in Congress, requiring identical text to pass both chambers and gain presidential approval. While proponents argue that federal mandates are vital to shielding consumers from platform insolvencies and withdrawal delays, critics caution that onerous custody requirements and fee disclosures will impose heavy compliance burdens on smaller crypto firms. Without statutory compromise, platforms and
