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, client 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 — underneath 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 property needs to be regulated within the U.S. by giving the CFTC unique jurisdiction over spot markets for “digital commodities,” whereas leaving securities-related digital property underneath the Securities and Trade 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 strains.
Booker reminded colleagues that the bipartisan November draft represented “one in every 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 right now shouldn’t be 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 — notably ethics safeguards for public officers and stronger client protections.
Failed Democrat amendments
A number of Democrat-led amendments failed on the committee ground. An ethics-focused modification that will have barred the President, Vice President, federal elected officers, and sure relations from profiting off crypto whereas in workplace — and required coated property to be positioned in blind trusts — was defeated.
Different Democratic proposals addressing crypto ATM fraud protections, chapter protections for crypto intermediaries, and expanded client safeguards additionally didn’t go.
Sen. Adam Schiff (D-Calif.) echoed considerations about ethics, urging language that covers all federal officers.
Sen. Elissa Slotkin (D-Mich.) charged that Republican opposition can be louder if comparable provisions focused previous Democratic administrations, alluding to reported monetary good points by the Trump household from crypto property whereas in workplace.
Regardless of all of the discussions, the assembly led to a vote roughly an hour after deliberations passed off.
Senator Cynthia Lummis celebrated the deliberation outcomes, posting on X, “Nice to see digital asset market construction go [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, ground amendments, and a 60-vote cloture hurdle earlier than it could go 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 various pursuits, together with Wall Avenue lobbyists.
Even with progress within the Senate Committee, it might nonetheless must be reconciled with the Home’s broader CLARITY Act (which the Home superior in July final yr) most probably by way of a convention committee, earlier than a ultimate 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 group pushing again on key provisions that will prohibit officers from personally benefiting from crypto.
