Overview
- Democrats won control of both the House and Senate in the Nov. 3 midterms, a result that makes the industry-backed CLARITY Act far less likely to pass in its current form.
- The CLARITY Act already failed a Senate cloture vote on Sept. 15 by a 49–50 margin, leaving only a slim chance of revival during the lame-duck session before the new Congress convenes on Jan. 3, 2027.
- House Democratic staffers are discussing a new market-structure bill built around Rep. Maxine Waters’ investor-protection amendment that would expand SEC supervision, narrow the CFTC role, and add strict customer safeguards.
- Incoming Democratic committee leaders plan focused probes of the Trump family’s crypto ties, including World Liberty Financial, and are likely to press ethics limits in any new legislation.
- Despite the political shift, the SEC and CFTC are continuing separate rulemaking on fundraising, custody and retail crypto transactions, so day-to-day trading and agency-driven changes should remain steady in the near term.