The U.S. Senate Agriculture Committee has advanced sweeping crypto market structure legislation, voting 12–11 along party lines on Thursday. While the move keeps the bill alive, the lack of Democratic support highlights deepening political friction - particularly around President Donald Trump’s expanding crypto interests, which lawmakers say complicate efforts to deliver bipartisan rules for the digital asset industry.
A Narrow Vote Signals Growing Divides
The Senate Agriculture Committee has traditionally been viewed as more collaborative on crypto than its Senate Banking Committee counterpart. During Thursday’s hearing, lawmakers from both parties acknowledged months of behind-the-scenes cooperation. Still, the final vote underscored how fragile that cooperation has become.
Senator Cory Booker emphasized that progress had been made earlier in the process, referencing a bipartisan discussion draft released in November. However, he said that momentum stalled after the holidays.
Expanding CFTC Authority Over Crypto
The bill approved by the committee would significantly expand the authority of the Commodity Futures Trading Commission over crypto markets. Supporters argue that the framework delivers long-sought clarity by defining how digital assets are regulated at the federal level.
Notably, the legislation includes provisions favorable to decentralized finance, such as protections for noncustodial software developers and infrastructure providers. These measures are designed to prevent developers from being treated as financial intermediaries when they do not control user funds - a point long championed by the crypto industry.
Trump’s Crypto Ties Become a Flashpoint
Despite policy progress, politics dominated much of the debate. Several Democrats raised concerns about President Donald Trump’s financial involvement in crypto, calling it a serious conflict of interest as Congress attempts to regulate the sector.
Bloomberg recently estimated that Trump has earned roughly $1.4 billion from crypto ventures, including his family’s involvement in World Liberty Financial, a DeFi and stablecoin project. The Trump family is also reported to hold a 20% stake in the mining firm American Bitcoin.
Senator Michael Bennet introduced an amendment addressing these concerns, framing the issue as one of democratic integrity rather than digital assets alone.
Amendments Fall Short as Chair Pushes Ahead
Committee Chair John Boozman acknowledged Bennet’s concerns but argued that questions around elected officials owning crypto assets fall outside the scope of the bill currently under review. He suggested that broader ethics reforms would require additional debate and input beyond the committee’s mandate.
Other proposed amendments - including one aimed at preventing fraudulent transactions at digital asset kiosks - were also rejected, leaving the bill largely intact as it advanced.
What Happens Next in the Senate
With the Agriculture Committee’s version approved, attention now turns to the Senate Banking Committee, which must advance its own version before legislation can move forward. That process remains uncertain after the Banking Committee abruptly pulled its markup following Coinbase withdrawing support.
Coinbase cited concerns over tokenized equities, DeFi restrictions, regulatory roles for the SEC and CFTC, and the unresolved issue of stablecoin rewards. Until those disagreements are resolved, the path forward remains rocky.
If the Banking Committee does advance its bill, both versions must be reconciled into a single package and sent to the full Senate. There, 60 votes will be required, meaning all Republicans - and at least some Democrats - would need to back it. Given Thursday’s party-line vote, that outcome is far from guaranteed.
A Bill Moving Forward, But on Shaky Ground
While the committee vote keeps crypto legislation alive, it also underscores how political dynamics may outweigh technical policy debates in the weeks ahead. For now, the crypto industry has gained momentum - but whether that momentum survives the Senate’s deeper divisions remains an open question.
