House Democrats are preparing to advance crypto legislation following their strong performance in the U.S. midterms. Plans are underway to expand the Crypto Investor Consumer Bill of Rights, an amendment to the Clarity Act led by Representative Maxine Waters, into a broader market structure bill. This proposal would grant the SEC more authority over crypto markets while limiting the CFTC's role, according to sources cited by journalist Eleanor Terrett.
Despite the Republican Party's reputation for being more crypto-friendly, experts suggest that crypto policy is evolving into a bipartisan issue. Stand With Crypto, an advocacy group, endorsed 45 candidates in the midterms, with 27 pro-crypto candidates winning their races. Mason Lynaugh, the group's executive director, expressed pride in the majority of endorsed candidates securing victories.
The Clarity Act, which aims to establish rules for crypto markets, has faced challenges, particularly after stalling in the Senate earlier this year. James Butterfill, head of research at CoinShares, noted that the loss of Republican Bryan Steil, a key figure in advancing the Clarity Act, is a significant setback for crypto. However, Butterfill also highlighted several pro-crypto winners, including Democrats Chris Pappas and James Talarico, and Republican Harriet Hageman.
Carlos Guzman, vice president of research at GSR, cautioned that passing the Clarity Act has become more difficult. He suggested that any agreement will likely require stronger provisions on consumer protection and conflicts of interest. Meanwhile, Bitcoin is currently trading at around $76,820, down 4.1% on the day, reflecting market volatility following the midterms.