Democrats Reportedly Push CLARITY Act Rewrite to Expand SEC Powers
Democrats are reportedly preparing major changes to the CLARITY Act following their Scott Melker warns that the proposed changes could reshape the regulatory outlook for Bitcoin and the broader crypto industry.He pointed to the new language for crypto market structure legislation floated by Rep. Maxine Waters (D-CA).Journalist Eleanor Terrett highlighted that the changes would expand Waters’ Crypto Investor and Consumer Bill of Rights.The proposal could increase SEC oversight, limit the CFTC’s authority and impose stricter ethics rules on President Donald Trump and federal officials’ crypto activities.It would also incorporate the earlier rejected Democratic CLARITY Act provisions and bipartisan Senate proposals.Republicans have dismissed the effort as a "messaging bill."Could Democrats Delay Crypto Regulation?Melker argued that Democrats could push for a substantially different version of the CLARITY Act after taking control of Congress.He noted that legislation would still need sufficient Senate support and could face a veto from the President.Melker also suggested that the industry has a limited window to advance crypto-friendly policies under the current SEC and CFTC leadership.Despite the political uncertainty, he expects institutional blockchain adoption and tokenization to continue gaining momentum.Strategy’s funding recovery, Coinbase’s expanded access to Deribit crypto options, futures and perpetuals act as potential growth catalysts.Preview Image: Shutterstock