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Crypto bill clears U.S. Senate milestone as effort advanced through first committee

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The U.S. Senate has moved to a new stage with the crypto market structure legislation that the industry hopes will help it reach a new plateau of investor confidence and involvement, with a committee formally advancing the bill on Thursday.

This is as far as the crypto sector’s top policy effort has ever progressed in the Senate, though there are some headwinds. The committee working on the bill was the Senate Agriculture Committee, and its Republican chairman chose to step away from negotiations and vote on the legislation without bipartisan support. The resulting Republican-driven result — concluding quickly with a 12-11 party-line vote — will still need to gather significant Democratic support before it can eventually clear the structural hurdles of the Senate.

“After months of work, we have made significant progress, really significant progress working together,” said committee Chairman John Boozman, as the panel began work. “Now it’s time to move this process forward.”

Democrats at the long-awaited markup session lined up as a unified block to oppose Republican preferences, illustrating the partisan standoff that’s yet to be overcome. Several Democrats noted they hope to keep working on it to get to a bipartisan version, and Boozman himself acknowledged that the text can be updated through a manager’s amendment before it proceeds through the Senate.

“The progress that has been made here is good, but I think we believe that we’re not quite done yet,” said Senator Amy Klobuchar, the panel’s ranking Democrat. “I hope we can continue to negotiate as this bill moves forward.”

The Agriculture Committee is one of two panels that ultimately need to sign off on the legislation. However, it’s the Senate Banking Committee that might have the tougher time, because its version of the Digital Asset Market Clarity Act contains some of the more controversial elements, including the question of stablecoin yield. That effort, though, has been delayed in its own markup and stymied by the search for a compromise that will satisfy a number of interests, including Wall Street banking lobbyists.

The White House intends to host another meeting next week with the intent to find common ground among crypto, banking, Republican, Democratic and administration interests. President Donald Trump and his representatives have pushed back on a couple of central points in the legislative effort, including Democrats’ demands that he and other senior government officials be blocked from personally benefiting from crypto business interests.

Senator Corey Booker, the lead Democrat negotiator, said the White House has made progress on the bill “infinitely harder.””This is ridiculous that the president of the United States and his family have made billions of dollars off of this industry and are still trying to create a framework here without the kind of ethics that would prevent this kind of gross corruption in our country,” Booker said.

On Thursday, the hearing’s first amendment addressed the Democrats’ ethics component.

Boozman also seemed to support another of the Democrats’ requests, that the Commodity Futures Trading Commission get a full slate of commissioners as it moves into a leading role in overseeing crypto.

“It’s essential to have a completely staffed, bipartisan commission,” he said.

The chairman noted as the markup concluded that the committee now needs to work with its Banking Committee counterparts and with lawmakers in the House of Representatives to come up with something that can be supported by both parties. He also said some of the amendments offered were better suited to that committee’s version of the bill.

If all goes well, this is what’s needed to turn the bill into law:

  • After the legislation cleared the Senate Agriculture Committee on Thursday, it eventually needs to do the same in the Banking Committee.
  • The distinct versions would need to be combined for a final Senate floor bill, which potentially gives the bill’s advocates another chance to satisfy resistant Democrats.
  • A combined bill could then be presented to the Senate for a final vote.
  • A yes at that stage moves it back to the House of Representatives, which already passed its own version of the legislation with an overwhelming majority.
  • Another approval sends the Clarity Act to Trump to be signed into law.

The crypto industry is already sitting on a high-stakes win in this congressional session, having advanced a bill to govern U.S. stablecoin issuers into law, making its first major legislative victory in the U.S. But the industry has a tightening window to get this even bigger bill through as the Senate battles over federal funding and is getting nearer November’s midterm elections.

US Senate Kicks off Markup of Long-Awaited Crypto Market Structure Bill

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US lawmakers are beginning a key markup session Thursday morning on a long-awaited crypto market structure bill, marking a pivotal step in Congress’ effort to establish clearer rules for digital asset markets.

The bill has been months in the making and follows sustained pressure from the crypto industry and some lawmakers to move beyond enforcement-led regulation. Today’s session may signal how much bipartisan support remains and which provisions may face resistance as lawmakers debate the future framework for US digital asset markets.

This live blog will track key moments and reactions as the markup unfolds.

Jan. 29 4:20 pm UTC

Democrats focus on ethics provisions, bipartisan solutions

Senators Adam Schiff and Elissa Slotkin, both Democrats, emphasized the need for bipartisanship in their comments to the agriculture committee, but reiterated Booker’s remarks about the need for ethics provisions. Slotkin also expressed concerns about national security and the leadership of the CFTC, where only Chair Michael Selig sits in a panel meant for five people.

“Handing over responsibility for oversight of this bill to one guy, who in his own confirmation hearing in front of our committee was very open about being very pro-crypto industry, just doesn’t give confidence that, again, we’re gonna have appropriate balanced oversight on a very new issue,” said Slotkin.

Jan. 29 4:07 pm UTC

“We do not want to be criminalizing people who are writing code,” Sen. Booker says

New Jersey Senator Cory Booker laid out some of his and Democrats’ goals for the market structure bill, including having the US Securities and Exchange Commission (SEC) and CFTC “coordinate and collaborate” on crypto rulemaking and protections for self-custody and innovative technology.

“We do not want to be criminalizing people who are writing code,” said Booker.

The senator shared his frustration over the lack of bipartisan participation in the most recent version of the bill, compared to the draft he and Boozman released in November. Booker said he had been engaging with stakeholders as recently as Wednesday evening to address provisions on decentralized finance, and took aim at US President Donald Trump’s involvement in the crypto legislation.

“The White House has made this infinitely harder […] the fact that Donald Trump is grifting on crypto himself,” said Booker, adding: “This is ridiculous that the President of the United States and his family have made billions of dollars off this industry and are still trying to make a framework here without the kind of ethics that would prevent this kind of gross corruption in our country.”

Senator Cory Booker speaking at markup. Source: Senate Agriculture Committee

Jan. 29 3:46 pm UTC

Chair Boozman and ranking member Klobuchar give opening remarks

Committee Chair John Boozman and ranking member Amy Klobuchar addressed lawmakers before considering amendments on Thursday. According to Boozman, the committee had made “really significant progress” on the market structure bill, but noted that any efforts had to be combined with those in the Senate Banking Committee, which postponed its own markup after Coinbase said it could not support its version of the bill as written.

Klobuchar added that there had been “good” progress on the bill, but not enough to gain bipartisan support, including on provisions to prevent lawmakers from engaging with the crypto industry. Her remarks signaled that she would be pushing her amendment to have the CFTC have at least four Senate-confirmed commissioners before the market structure bill would be effective:

“We can’t give this CFTC this broad new authority when it only has one member, one Republican member.”

Cryptocurrencies, Politics, Congress, Senate, SEC, CFTC
Senate Agriculture Committee Chair John Boozman speaking at markup. Source: Senate Agriculture Committee

Jan. 29, 3:32 pm UTC

Lawmakers on the Senate Agriculture Committee expected to vote on 11 amendments

The digital asset market structure bill, called the Digital Commodity Intermediaries Act in the Senate Agriculture Committee, will be under consideration as lawmakers vote on amendments related to leadership at the US Commodity Futures Trading Commission (CFTC), ethics, and foreign interference in US markets. Although an amendment proposed by Senator Roger Marshall related to credit card swipe fees is still on the committee’s schedule, reports suggested that he would not push for such provisions in the bill.