The proposed rewrite could expand SEC oversight and revive stricter rules on crypto withdrawals, custody, proof of reserves, and investor protection.

House Democrats are reportedly discussing a broader crypto market structure bill built partly on Rep. Maxine Waters' earlier investor-rights proposals.

According to a Nov. 4 post by journalist Eleanor Terrett, the proposals include a larger SEC role, a smaller CFTC role, and more government ethics restrictions.

Industry sources who spoke with Democratic staff form the basis of that account, and the bill text remains unpublished. Waters' 2025 amendment shows what customer rules a Democratic framework could carry, and the September CLARITY compromise shows how much of that ground the Senate text already covered before cloture failed 49-50 on Sept. 15.

Amendment #31, a nine-page text from July 2025, would have imposed duties on exchanges, brokers, custodians, and other retail-facing digital asset firms. Withdrawals and transfers would be due within 24 hours, except in cases of documented good-faith fraud.

Firms would join SIPC if eligible or fund an equivalent customer-asset protection arrangement, hold customer assets in segregated, bankruptcy-remote accounts, and obtain affirmative, revocable consent before rehypothecating, lending, or staking them.

Cryptographically verifiable proof of reserves would include a licensed accountant's monthly attestation.

Crypto customer orders would take priority over proprietary orders under best-execution practices, and affiliated proprietary traders or market makers would be barred from trading against customers on the same platform.

Human support would be reachable around the clock within five minutes, and customers and regulators would hear of specified security breaches within 48 hours.

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