WASHINGTON, Jan 29, 2026, 14:17 (EST)
- The Senate Agriculture Committee pushed forward a crypto market structure bill, passing it strictly along party lines.
- Democrats pointed out that ethics rules and safeguards for DeFi remain absent, casting uncertainty over Senate approval.
- The White House plans to bring together banking and crypto leaders to discuss stablecoin “rewards” and other contentious issues.
On Thursday, the U.S. Senate Agriculture Committee pushed forward a bill aiming to establish federal regulations for much of the cryptocurrency sector. Notably, the legislation advanced without any Democratic support. Reuters
The committee vote is crucial since Congress has long wrestled with drafting a comprehensive “market structure” law that clearly defines regulatory authority over crypto. Meanwhile, the industry has pushed hard for clearer rules to end the current patchwork of enforcement battles.
Thursday’s split highlights the bill’s core issue: it might pass committee, but securing enough Democratic backing to get past Senate procedure remains a hurdle. Meanwhile, banks and crypto companies are clashing over whether exchanges should be allowed to offer yields on stablecoins — those crypto tokens tied to the U.S. dollar.
The measure passed narrowly, 12-11, and is known as the Digital Commodity Intermediaries Act, according to the American Bankers Association’s Banking Journal. Committee chairman John Boozman called this markup “the first step,” noting that the Banking and Agriculture committees will need to merge their efforts before the bill can reach the Senate floor. Aba
The legislation, if passed, would broaden the Commodity Futures Trading Commission’s authority to cover spot crypto markets—where assets exchange hands instantly rather than through futures contracts—and impose regulations on crypto exchanges, brokers, and dealers, Reuters reported.
Democrats on the committee say they want a bill—but not this one. Cory Booker criticized the process, saying, “The White House has made this infinitely harder.” Meanwhile, Democrats like Adam Schiff pushed for ethics provisions applying to “all federal officials… from the president on down,” according to Decrypt. Decrypt
Booker cautioned that lawmakers were “almost in the red zone” on the bill, yet the draft heading for a vote didn’t capture ongoing talks about decentralized finance, or DeFi — blockchain-powered financial services operating without traditional middlemen, Reuters reported.
The political battle is now intersecting with a technical debate: should crypto platforms be allowed to offer interest-like rewards on stablecoin holdings? Banks argue this could drain their deposits, while crypto companies insist it’s crucial for attracting customers.
The White House plans to meet Monday with leaders from banking and crypto sectors, aiming to hash out a deal on stablecoin rewards, Reuters reports. Summer Mersinger, CEO of the Blockchain Association, said the group is “proud to participate.” Cody Carbone, CEO of The Digital Chamber, noted the administration is “pulling all sides to the negotiating table.” Reuters
The Agriculture Committee’s bill represents just one part of the Senate’s push. The Banking Committee’s counterpart has faced delays and more heated debate, with a markup planned for earlier this month getting postponed, Reuters reports.
Boozman also dealt with pressure from unrelated add-ons. Sen. Roger Marshall put forward an amendment aimed at incorporating his Credit Card Competition Act proposal but ended up not pushing it to a vote, the Banking Journal reported.
The biggest threat to the crypto industry is clear: a party-line committee victory might lead nowhere. Unless there are negotiated adjustments—covering DeFi, ethics rules, and the stablecoin rewards debate—the bill risks falling short of the bipartisan backing required to get to President Donald Trump’s desk.
Thursday’s vote sets a clear marker: Republicans are ready to push ahead with a crypto framework centered on the CFTC, but Democrats are making it clear their backing hinges on amendments the Senate has yet to approve.
