The Senate Agriculture Committee passed the Digital Commodity Intermediaries Act 12-11 along party lines—the first crypto market structure bill to clear a Senate committee.
Senate Advances Historic Crypto Bill in 12-11 Party-Line Vote
The Senate Agriculture Committee voted 12-11 along strict party lines on January 29th to advance the Digital Commodity Intermediaries Act, marking the first time a crypto market structure bill has cleared a Senate committee after years of industry lobbying and failed legislative efforts. The historic vote moves the legislation one step closer to becoming law, though significant hurdles remain.
The bill, released by Chairman John Boozman on January 21st, gives the Commodity Futures Trading Commission regulatory authority over digital commodities, establishes legal definitions for digital assets, and creates a framework for regulating spot market intermediaries including brokers, dealers, and exchanges. It also protects DeFi protocol developers from liability as long as they don't control customer assets—a provision the industry views as essential for innovation.
The vote was entirely partisan. All 12 Republicans voted yes, while all 11 Democrats voted no. Democrats had proposed several amendments during the markup session, including one from Senator Michael Bennett that would have banned public officials—including the president—from profiting off crypto business interests. The amendment directly targeted President Trump's World Liberty Financial venture and $TRUMP memecoin, which have reportedly added over $1 billion to his net worth.
Boozman rejected the amendment, arguing it reached "way beyond" the Agriculture Committee's jurisdiction and belonged in ethics oversight, not commodity regulation. All Democratic amendments failed on party-line votes, including proposals to address foreign adversary involvement in digital commodities and enhanced protections against crypto ATM scams.
Senator Cory Booker, who had been working with Boozman on a bipartisan version of the bill, expressed disappointment that Republicans chose to proceed without Democratic support. "The White House has made this infinitely harder," Booker said, referring to Trump's crypto conflicts of interest. Despite voting against the bill, Booker and other Democrats signaled they remain at the negotiating table and hope to find common ground before a full Senate vote.
The Agriculture Committee's passage is only the first checkpoint. The legislation now faces a more difficult path through the Senate Banking Committee, which has jurisdiction over stablecoins, the SEC, and banking regulations—the most contentious aspects of crypto market structure. The Banking Committee postponed its own markup in mid-January after Coinbase CEO Brian Armstrong withdrew support over restrictions on stablecoin yield, arguing the bill gave banks preferential treatment.
That dispute remains unresolved. Banks argue that allowing crypto firms to offer interest on stablecoins could drain trillions in deposits from the traditional financial system, threatening stability. Crypto companies counter that banning yield puts them at a structural disadvantage compared to savings accounts and money market funds. The White House is hosting a summit next week with executives from Coinbase, Ripple, Kraken, and major banks to broker a compromise.
If the Banking Committee approves its version, the two bills would need to be merged into a single package before advancing to the full Senate. Passing the Senate requires at least 60 votes, meaning Republicans would need to secure support from at least seven Democrats. The House already passed its version of the CLARITY Act with overwhelming bipartisan support last July, so if the Senate approves a combined bill, the legislation would return to the House for reconciliation before heading to President Trump's desk.
The crypto industry has spent heavily to reach this point. Fairshake, the sector's top super PAC, announced on January 28th that it has $193 million in cash on hand heading into the 2026 midterms, including nearly $75 million in new contributions from Coinbase, Ripple, and Andreessen Horowitz. Whether that financial firepower is enough to overcome partisan divisions and banking industry resistance remains uncertain.
For now, the Agriculture Committee vote represents the furthest any crypto market structure legislation has progressed in the Senate—a milestone years in the making, but one that still requires navigating the more difficult Banking Committee negotiations and securing bipartisan support in a deeply divided chamber.