Democratic Congress: a “pro-SEC” crypto law for 2027, World Liberty and the pardon of CZ in the viewfinder

“Follow the money. » (Deep Throat, The President's Men, Alan J. Pakula, 1976)

Act II at the Capitol. The day after the midterms, we listed the consequences of the Democratic sweep for crypto. Among them, the death of the CLARITY Act and the probable arrival of Elizabeth Warren at the head of the Senate Banking Committee. Forty-eight hours were enough for the rest to be written. A replacement text gives control back to the SEC. And the House Oversight Committee is already announcing its targets: World Liberty Financial and the pardon granted to Changpeng Zhao.

Key Points

In the future majority, we are discussing a market regulation text which is the opposite of the CLARITY Act. He would give control back to the SEC from the January 2027 legislature.

The Oversight Commission is promising subpoenas on day one, with the Trump family's crypto business at the top of the list.

The crypto lobby has put more than $150 million into the ballot. He lost his most expensive bet, the Battle of Ohio against Sherrod Brown.

A “pro-SEC” crypto law to replace the CLARITY Act

Journalist Eleanor Terrett revealed on November 4 that House Democrats are discussing expanding the “Crypto Investor and Consumer Bill of Rights.” This amendment from Maxine Waters to the CLARITY Act of 2025 would become comprehensive market structure legislation for the next Congress. According to Decrypt, the text would give the SEC an expanded role in supervising crypto markets. On the other hand, it would reduce that of the CFTC. The CLARITY Act passed by the House in July 2025 (294 votes to 134) did the opposite. He entrusted “digital commodities” to the derivatives regulator.

The project would take up the protections defended by Waters in 2025. On the program: segregation of client funds, guaranteed withdrawals within 24 hours and proof of monthly reserves. He could also add ethical limits targeting the president and senior officials. This is one of the points which caused the closing vote in the Senate to fail on September 15 (49 votes to 50). No text has been submitted at this stage. GSR's Carlos Guzman doesn't call it "game over" for the CLARITY Act. However, he considers its adoption “become more difficult”.

World Liberty Financial, the pardon of CZ and the addition of PACs

Robert Garcia, tipped to chair the House Oversight Committee, set the tone in two words on X: “Lawyer up.” At a press conference on Wednesday, he directly targeted the head of state. “The president himself has a crypto setup with which he makes billions of dollars,” he said. According to crypto.news, the first investigations could open as early as February 2027, once the commissions are installed. Garcia speaks of assignments “from day one” of the new majority. World Liberty Financial is at the top of the files. The Trump family company sold 49% of its capital to a vehicle of Emirati Sheikh Tahnoon bin Zayed, for $500 million. Democrats are also questioning the circumstances of the pardon granted to Changpeng Zhao in October 2025. The subject returns a week after the $6.3 billion Binance hack.

The Wall Street Journal, for its part, expects Elizabeth Warren to chair the Senate Banking Committee. She would replace Republican Tim Scott. She is already pushing a ban on elected officials and their families profiting from the sector. TD Cowen's Jaret Seiberg believes Democrats will "investigate Trump's crypto ties, including World Liberty Financial." He doesn't see the CLARITY Act moving forward for two years.

Over $170 million in crypto PAC for a lost bet

The campaign bill falls at the same time. Fairshake spent $154.5 million on the cycle, more than $170 million with its two affiliated PACs. Pro-crypto PACs have committed more than $60 million to defeat Sherrod Brown in Ohio. Brown still won. The former president of the banking commission could sit from December 15. Stand With Crypto has 27 wins and 12 losses among 45 supported candidates, with six races remaining to be decided. Coinbase's Kara Calvert warns that "there will be headwinds for any bipartisan legislation next year."