Democrats draft crypto bill giving SEC bigger role after CLARITY Act collapse

House Democrats are reportedly drafting a broader crypto market structure bill after the CLARITY Act collapsed, drawing partly on Rep. Maxine Waters' earlier investor-protection proposals. The plan would give the SEC a larger role and the CFTC a smaller one, plus new government ethics restrictions. Traders should watch this because a stronger SEC hand over digital assets could mean tougher registration and enforcement, a less favorable path than the industry-backed CLARITY framework.