Democrats’ New Crypto Bill Could Turn the SEC Against the Industry and Target Trump

Democrats have introduced a crypto market-structure bill that would expand the SEC’s authority over digital assets and add new conflict-of-interest restrictions aimed at President Trump’s crypto ventures. The proposal departs from the industry-backed CLARITY Act, which favored the CFTC, and would instead give the SEC a larger role in classifying and overseeing tokens and trading platforms. The bill also targets Trump-linked projects, including World Liberty Financial and the TRUMP memecoin, by barring federal officials and their families from issuing or sponsoring digital assets. The measure matters because it could reshape how exchanges register and operate, reversing the lighter-touch CFTC approach that much of the industry has lobbied for. Whether Democrats and Republicans can reconcile the bill with CLARITY before the legislative calendar runs out will determine the rules exchanges and investors ultimately face.