Former House Financial Services Committee chair Patrick McHenry expressed concerns regarding future cryptocurrency legislation. He anticipates that Maxine Waters, who is expected to lead the committee in January 2027 following the November 2026 midterm elections, will pursue a restrictive regulatory approach.
Waters previously introduced the Crypto Investor and Consumer Bill of Rights in 2025. Her proposal included mandates for firms to provide monthly proof of reserves and ensure 24-hour withdrawal access for customers. McHenry characterized her stated goal of tough but fair rules as potentially harmful to the industry.
McHenry also reflected on his own legislative strategy, specifically the Digital Asset Market Clarity Act. He admitted that separating stablecoin regulations from broader market structure legislation was a strategic error that hindered the bill's progress before the political landscape changed.
Despite his warnings about future leadership, McHenry does not expect a total collapse of industry support. On November 9, 2026, he stated that bipartisan backing for crypto-friendly policies remains strong enough to block overtly hostile legislation in the incoming Democratic House.
House Democrats are currently drafting a new market structure framework. This initiative reportedly incorporates elements from Waters’s previous proposals and aims to establish a balance of regulatory oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
