The Clarity Act may be dead in its current form after Democrats swept the midterm elections, but the drive to establish federal crypto market structure rules could continue in the next Congress. The emerging debate concerns who would supervise digital asset markets and how much protection a revised framework would give investors.

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House Democrats reportedly plan to expand Rep. Maxine Waters’ Crypto Investor Consumer Bill of Rights into a broader market structure proposal, according to Decrypt, citing reporting by journalist Eleanor Terrett. The measure originated as an amendment to the Clarity Act. Its potential expansion suggests Democrats could pursue their own framework rather than simply abandon the legislative effort.

That approach would reshape a central issue in crypto regulation: the division of authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Sources told Terrett that the proposal would strengthen the SEC’s supervisory role and limit the CFTC’s role. For companies seeking clearer rules, market-structure legislation could remain possible, but with a different allocation of regulatory power.

The report describes plans, rather than an agreed legislative package. It does not establish whether a revised measure could secure sufficient support in both chambers. But the direction could still be significant. The Clarity Act stalled in the Senate earlier this year, and Democratic control of Congress gives its critics greater influence over the terms of any successor.

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