House Democrats are preparing to replace the CLARITY Act with a crypto market regulation bill that would expand the SEC’s role and reduce the CFTC’s starting in January 2027. The proposal would restore client-fund segregation, withdrawals guaranteed within 24 hours, monthly reserve attestations and ethics restrictions covering the president and senior officials. The House Oversight Committee, led by Robert Garcia, is promising subpoenas as soon as it takes office and is targeting World Liberty Financial, the Trump family’s crypto company, first. Democrats also plan to examine the circumstances surrounding Changpeng Zhao’s October 2025 pardon, while pro-crypto PACs spent more than $170 million during the election cycle and more than $60 million trying to defeat Sherrod Brown in Ohio.
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