Brief
- Reports suggest that Democrats in the U.S. House of Representatives plan to expand the "Cryptocurrency Investors and Consumers Rights Act" proposed by Maxine Waters into a broader market structure bill, granting more regulatory powers to SEC.
- The candidates supported by Stand With Crypto won 27 elections and lost 12, with another 6 elections still in progress.
- Analysts say that the path forward for Clarity Act has become more difficult, but this does not mean that the bill is no longer a possibility.
It is reported that after a great victory in the U.S. mid-term elections, Democrats in the House of Representatives are preparing to advance cryptocurrency legislation.
Reporter Eleanor Terrett posted on X that there are plans to expand the "Cryptocurrency Investors and Consumers Rights Act" – an amendment pushed by Democratic Representative Maxine Waters, which targets Clarity Act – into a broader market structure bill in the next session of Congress. Sources told Terrett that the proposal will include granting SEC greater powers to regulate the cryptocurrency market and limiting the role of CFTC.
Breaking News: Democrats in the House of Representatives are discussing plans to expand the @RepMaxineWaters's Cryptocurrency Investors and Consumers Rights Act proposed to Clarity Act in 2025 into a broader cryptocurrency 'market structure' bill in the next Congress.
"The proposal will be incorporated into the Democratic Party's Clarity Act..."
On the surface, the results of the mid-term elections may be seen as a major blow to U.S. crypto policy, as the Republican government under President Trump is widely regarded as pro-crypto, while the Democrats are seen as more hostile. However, experts interviewed told Decrypt, the situation may be changing, and crypto policy is evolving into an issue with a more bipartisan character.
Encryption candidate and Clarity Act
The advocacy organization Stand With Crypto stated that, according to its election tracker, the organization endorsed 45 candidates during the mid-term elections. Among them, 27 pro-crypto candidates won, 12 lost, and there were still 6 races that had not concluded at the time of publication. Nearly half of the endorsed candidates were Democrats.
Executive Director Mason Lynaugh stated in a declaration shared with Decrypt: "We are proud to see that most of the candidates we endorsed won the election. To those candidates who did not make it back to Washington, thank you for speaking up for Americans who own crypto assets at this critical time."
Congratulations to the pro-crypto fighters who won the election, including over 50 new congressmen who are pro-crypto.
In the most recent election campaign, our advocates also participated actively: in Florida's 9th Congressional District, Darren Soto won by a margin of 1,477 votes. In the same district, we mobilized...
CoinShares Research Director James Butterfill described the Republican Bryan Steil as a "major loss" to the crypto industry. This Wisconsin state congressman once served as the chairman of the House Digital Assets Subcommittee and was deeply involved in promoting the efforts of Clarity Act; that bill encountered obstacles after it was stalled in the Senate earlier this year.
However, Butterfill also mentioned some winners – the Democrat from New Hampshire, Chris Pappas, the Democrat from Texas, James Talar (token issuance), and the Republican from Wyoming, Harriet Hageman – all of whom support crypto policies. But he emphasized that the current challenge is how to “transform” this support into legislation that is passed. He believes that this could slow down the already difficult progress of Clarity Act.
GSR, Vice President of Research at a Cryptocurrency Trading Company, told Decrypt: "I won't say that Clarity is completely off the table, but it has become more difficult to achieve. Some Democrats support clearer cryptocurrency regulations, but I don't think that will be a priority on their agenda. Any agreement may need to include stronger provisions regarding consumer protection and conflicts of interest."
Clarity Act aims to establish rules for the crypto market and has been a subject of back-and-forth debate in Congress since 2025. Democrats have consistently opposed the bill on the grounds of Trump's conflicts of interest in the crypto industry; Senator Elizabeth Warren from Massachusetts, who is a Democrat, has pushed to include provisions in the bill that prohibit officials and their families from profiting from this industry.
Guzman said, 'Regarding other crypto policies, the election results will not automatically change the leadership of SEC or CFTC, nor will they prevent them from continuing to formulate rules. However, there will be changes in congressional oversight, so we may see stricter scrutiny of regulatory decisions, and Democrats will also be able to influence institutional budgets and future appointments.'
Butterfill added that he believes the dependence of the crypto industry on Clarity Act is declining, as SEC and CFTC are pushing for clearer regulation without the need for Congress. He also stated that AI regulation may distract attention from crypto, thereby slowing down the progress of crypto policies.
After the mid-term elections, Bitcoin experienced fluctuations. According to the data from Decrypt, Bitcoin is currently trading at around $76,820, with a daily decline of 4.1%.
Butterfill told Decrypt: "Based on this result alone, I will not change my view on the medium-term prospects for Bitcoin. Slower reforms may delay some institutional activities, but we expect that the more direct impact will fall on American crypto companies that rely on new regulatory approvals. If political uncertainty substantially weakens investment inflows or tightens financial conditions, we will re-evaluate the prospects."
