Democrats weigh stronger SEC crypto regulation as the Senate bill stalls

House Democrats are reportedly discussing legislation that would expand the SEC’s role in crypto regulation and strengthen investor protections, drawing partly on Rep. Maxine Waters’ 2025 investor-rights amendment . Journalist Eleanor Terrett’s November 4 account describes a broader market-structure proposal with a smaller CFTC role and additional government ethics restrictions, following the CLARITY Act’s stalled advance in the Senate. Key takeaways Democrats’ discussions draw on Waters’ failed customer-protection amendment. The Senate blocked the CLARITY Act’s advance on September 15, 2026. Comments on the SEC’s custody proposal are due December 7, 2026.