Senate Agriculture Committee Advances Crypto Market Structure Bill on Party Lines Amid Bipartisan Stalemate
By Staff Reporter
WASHINGTON – The U.S. Senate Committee on Agriculture, Nutrition, and Forestry voted 12-11 along party lines on Thursday to advance the Digital Commodity Intermediaries Act, a landmark cryptocurrency bill granting expanded regulatory authority to the Commodity Futures Trading Commission (CFTC).[2][3]
The narrow approval sends the legislation to the full Senate, marking a significant step toward establishing a federal framework for digital asset markets despite failed bipartisan negotiations between Chairman John Boozman (R-AR) and Sen. Cory Booker (D-NJ).[2][5]
Party-Line Vote Follows Weather Delay and Months of Talks
The markup session, originally scheduled for Tuesday, was postponed until Thursday morning due to a severe winter storm that disrupted travel across the East Coast.[1][5] Despite the delay, Republicans pushed forward with their version of the bill after Democrats proposed amendments that were rejected along party lines.[2]
Boozman, in his opening statement, emphasized the CFTC’s suitability to oversee spot trading of digital commodities. “This bill provides a clear definition of a digital commodity, protects innovation and technology, establishes consumer protection safeguards, and equips the agency with the necessary resources,” he said.[2] He expressed commitment to bipartisan improvements as the bill progresses but cited “fundamental policy disagreements” with Democrats.[2][3]
Democrats, led by Booker, had unveiled amendments on Friday addressing ethics concerns, including bans on federal officials and their families issuing or endorsing digital assets. Sen. Michael Bennet (D-CO) sponsored one such provision, targeting issues like the Trump family’s crypto ventures, but it failed.[2]
Key Provisions of the Digital Commodity Intermediaries Act
Released in updated form on January 21, 2026, the bill builds on the bipartisan House-passed CLARITY Act (H.R. 3633) from July 2025.[3][4][7] It focuses on regulating digital asset intermediaries such as brokers, dealers, exchanges, and custodians.[4]
- Defines “digital commodities” and grants CFTC authority over spot markets.
- Requires registration, disclosures, and consumer protections for intermediaries.
- Imposes fees on registrants to fund CFTC implementation, distinguishing them from traditional agricultural markets.[4]
- Incorporates some Democratic input and stakeholder feedback while leaving decentralized finance (DeFi) protocols largely unaddressed.[3][4]
The legislation aims to foster innovation while safeguarding consumers, according to Boozman. “This is a critical step toward creating clear rules for digital asset markets,” he stated in a press release.[3]
Path Forward: Reconciliation with Banking Committee Looms
The Ag Committee’s bill covers CFTC jurisdiction, but comprehensive market structure legislation requires merging with the Senate Banking Committee’s portion, which handles Securities and Exchange Commission (SEC) oversight.[2][5] The Banking Committee has paused its work to prioritize housing initiatives, with no new markup date set.[5]
Administration officials remain optimistic about eventual passage. Treasury Secretary Scott Bessent confirmed retaining seized bitcoin for a federal reserve, while CFTC Chairman Michael Selig announced a rules review to accommodate digital assets.[5]
Industry observers note the bill’s reliance on earlier bipartisan drafts but highlight its GOP-centric tilt. It provides expedited registration for intermediaries and policies for blockchain development disclosures.[4]
Broader Context in Crypto Regulation
The push reflects ongoing efforts to clarify overlapping SEC and CFTC roles in crypto oversight, a debate intensified by market volatility and enforcement actions. The House’s CLARITY Act set a precedent, defining digital assets and jurisdictional boundaries.[7]
Despite the partisan divide, Boozman thanked Booker for months of negotiations and signaled openness to floor amendments.[2][5] Democrats criticized the bill’s ethics gaps and push for bipartisan commissions at agencies.[1]
As the Senate reconvenes post-storm, the bill’s fate hinges on bridging Ag and Banking versions. With crypto markets maturing, stakeholders urge swift action to bolster U.S. competitiveness.[3][5]
Stakeholder Reactions
Crypto advocates praised the advancement as pro-innovation, while consumer groups echoed Democratic calls for stronger safeguards. The SEC and CFTC jointly rescheduled a press event to Thursday afternoon amid the weather disruptions.[1]
Boozman positioned the vote as momentum-builder: “Advancing this bill brings us closer to a U.S. regulatory framework that protects consumers while allowing American innovation and businesses to thrive.”[3]
The full Senate must now debate and potentially amend before sending a reconciled bill to President for signature. With government funding deadlines looming earlier in the week, Thursday’s action underscores Congress’s packed agenda.[1]
This development caps a turbulent week for Capitol Hill, blending crypto policy with weather woes and fiscal pressures.
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