House Democrats Revive Crypto Oversight Push

The proposal draws heavily from the Crypto Investor and Consumer Bill of Rights, an amendment originally introduced during the 2025 CLARITY Act deliberations. By folding in these rejected provisions, Democratic staffers are aiming to establish a framework that mandates monthly proof-of-reserves reporting, strict custody safeguards, and 24-hour withdrawal deadlines for retail crypto services. The draft also emphasizes fiduciary duties and continuous customer support, reflecting the core demands of the initial amendment that failed to clear the House Rules Committee.

Central to the discussions is a recalibration of regulatory power. The current trajectory favors a more expansive mandate for the SEC, potentially narrowing the Commodity Futures Trading Commission’s remit compared to previous Republican-led proposals. Furthermore, the legislation seeks to codify restrictions on crypto-related conflicts of interest involving the president, vice president, and members of Congress. These provisions, previously labeled under the Stop TRUMP in Crypto Act, would likely require officials to divest from certain digital interests or utilize blind trusts, a point of contention that persisted throughout earlier negotiations. While Republican counterparts have dismissed the current effort as a messaging exercise, the procedural history of the CLARITY Act—including a narrow 49–50 Senate vote—leaves the door open for continued legislative friction in the coming session.