In a narrowly divided party-line vote, The U.S. Senate Agriculture Committee superior its model of crypto market laws in a 12-11 vote Thursday, marking a milestone in congressional efforts to lastly legislate complete crypto market construction guidelines.
All Democrats on the committee opposed the movement, citing substantive disagreements over ethics provisions, shopper protections, and the independence of the Commodity Futures Buying and selling Fee (CFTC).
Chairman Sen. John Boozman (R-Ark.) opened the markup by touting months of negotiations and “substantive, cordial conversations,” however acknowledged that “basic coverage disagreements” stay.
“Now it’s time to maneuver this course of ahead,” Boozman mentioned, emphasizing the necessity to flesh out a regulatory regime for digital commodity intermediaries — together with exchanges, brokers, sellers, and custodians — beneath the CFTC’s oversight.
This dialogue emerged from the Agriculture Committee’s up to date legislative textual content launched on January 21, which builds on a bipartisan dialogue draft issued in November and on the Home-passed Digital Asset Market CLARITY Act of 2025.
The laws goals to lastly settle long-standing questions on how digital belongings must be regulated within the U.S. by giving the CFTC unique jurisdiction over spot markets for “digital commodities,” whereas leaving securities-related digital belongings beneath the Securities and Alternate Fee.
Bipartisan crypto aspirations clearly undercut committee discussions
Whereas preliminary variations of the Agriculture Committee’s language have been launched collectively by Boozman and Democratic Sen. Cory Booker (D-N.J.), Thursday’s markup confirmed some fractures alongside get together traces.
Booker reminded colleagues that the bipartisan November draft represented “considered one of my higher experiences within the Senate,” however argued that Republicans deserted the bipartisan course of after the Christmas recess.
“To be clear, the product earlier than us immediately isn’t the bipartisan draft that we have been engaged on,” Booker mentioned.
Rating Member Sen. Amy Klobuchar (D-Minn.) indicated that Democrats assist “the progress that has been made,” however careworn that key points stay unresolved — significantly ethics safeguards for public officers and stronger shopper protections.
Failed Democrat amendments
A number of Democrat-led amendments failed on the committee flooring. An ethics-focused modification that may have barred the President, Vice President, federal elected officers, and sure members of the family from profiting off crypto whereas in workplace — and required lined belongings to be positioned in blind trusts — was defeated.
Different Democratic proposals addressing crypto ATM fraud protections, chapter protections for crypto intermediaries, and expanded shopper safeguards additionally didn’t move.
Sen. Adam Schiff (D-Calif.) echoed issues about ethics, urging language that covers all federal officers.
Sen. Elissa Slotkin (D-Mich.) charged that Republican opposition can be louder if related provisions focused previous Democratic administrations, alluding to reported monetary beneficial properties by the Trump household from crypto belongings whereas in workplace.
Regardless of all of the discussions, the assembly led to a vote roughly an hour after deliberations happened.
Senator Cynthia Lummis celebrated the deliberation outcomes, posting on X, “Nice to see digital asset market construction move [the Senate Agriculture Committee.] We’re one step nearer to getting this laws to [the President’s] desk, and I look ahead to persevering with to work intently with my colleagues throughout the aisle to make America the digital asset capital of the world.”
What comes subsequent?
What comes subsequent is a protracted and procedurally heavy highway. The invoice should be formally reported, positioned on the Senate calendar, after which undergo management scheduling choices, potential filibusters, flooring amendments, and a 60-vote cloture hurdle earlier than it could actually move the Senate with a easy majority.
The Senate Banking Committee can also be working by way of laws which incorporates controversial points like stablecoin yield and tokenization.
Progress there was slowed by delays in markup and efforts to achieve a compromise satisfying numerous pursuits, together with Wall Road lobbyists.
Even with progress within the Senate Committee, it will nonetheless have to be reconciled with the Home’s broader CLARITY Act (which the Home superior in July final yr) most certainly by way of a convention committee, earlier than a closing up-or-down vote in each chambers sends it to the president’s desk.
In the meantime, the White Home deliberate one other assembly subsequent week to align crypto, banking, Republican, Democratic, and administration positions, amid President Trump and his staff pushing again on key provisions that may prohibit officers from personally benefiting from crypto.