House Democrats are discussing a crypto bill that would give the Securities and Exchange Commission (SEC) more power over trading platforms. It would also likely tighten limits on President Donald Trump’s crypto business.

Democrats won both chambers of Congress on Tuesday. Exchanges, their customers, and Trump’s family ventures could face tougher rules from January, though Republicans doubt the plan can pass.

What Would the Democrats’ Crypto Bill Change for Investors?

Three industry sources briefed by Democratic staffers described the plans to Eleanor Terrett, host of Crypto America podcast. No bill text exists yet.

The base is Rep. Maxine Waters’ 2025 Crypto Investor and Consumer Bill of Rights. The House Rules Committee blocked it from a floor vote, 4–8, its records show.

It would require crypto platforms to offer 24/7 customer service, insurance-like coverage, and withdrawals within 24 hours. Platforms would also publish monthly proof of reserves, an auditor-checked report showing they hold customer assets.

The SEC would gain a bigger supervisory role, Terrett reported. The Commodity Futures Trading Commission (CFTC), which oversees derivatives markets, would get a smaller one.

Exchanges know the SEC’s approach. In June 2023, it charged Coinbase with running an unregistered securities exchange, broker, and clearing agency.

How Could the Plan Hit Trump’s Crypto Income?

Democrats are also likely to add ethics rules restricting crypto activity by Trump and other federal officials.

Trump earned about $1.2 billion from crypto in 2025, according to disclosures reported by AFP. Nearly $550 million came from World Liberty Financial, his family’s crypto company. The White House denies any conflict.

Ethics fights already stalled the CLARITY Act, the industry-backed bill dividing oversight between both regulators. It failed a 49–50 Senate vote in September.

Can Democrats Get the Bill Into Law?

Republicans call the plan a “messaging bill,” Terrett reported. Any bill still needs 60 Senate votes and Trump’s signature.

On Wednesday, BeInCrypto reported that crypto’s biggest bill would start over under Democrats if CLARITY stalled. Hours later, Terrett’s sources described that reset taking shape.

Waters, in line to chair House Financial Services, demanded tougher oversight after last month’s $6.3 billion Binance hack.

“Americans deserve to know their money is safe,” Waters said.

If CLARITY stalls this year, the industry’s preferred bill faces a Democratic rival in January.

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