The U.S. Senate Agriculture Committee has released updated draft legislation aimed at defining how cryptocurrencies and digital commodities should be regulated in the United States, setting the stage for a critical hearing next week-even as major policy disagreements remain unresolved.
Lawmakers Push Forward Despite Disputes
Announcing the release on Wednesday evening, Committee Chair John Boozman said he worked alongside Democratic Senator Cory Booker to strengthen consumer protections and grant expanded authority to the Commodity Futures Trading Commission (CFTC). Still, Boozman acknowledged lingering divisions.
He added that although a full agreement was not reached, the process materially improved the legislation.
From Brackets to a Clean Draft
The new text marks a notable shift from the 155-page discussion draft released in November, which contained extensive bracketed sections indicating unresolved policy questions. Those earlier uncertainties covered sensitive areas such as decentralized finance (DeFi), joint rulemaking between the CFTC and the Securities and Exchange Commission (SEC), and the treatment of stablecoins.
The latest version removes all brackets, signaling firmer positions, but it also drops several contentious provisions entirely. Notably absent are sections addressing the treatment of noncontrolling blockchain developers and anti-money laundering requirements, issues that had proven difficult to reconcile.
Industry Welcomes Progress
Despite the omissions, industry groups welcomed the release. Ji Hun Kim, CEO of the Crypto Council for Innovation, described the updated bill as “an important step toward a comprehensive framework for digital commodities.”
Kim emphasized that clear rules of the road are critical for protecting consumers, supporting responsible innovation, and reinforcing U.S. leadership in digital assets-particularly as other jurisdictions move ahead with their own frameworks.
A Complicated Legislative Path Ahead
The Senate Agriculture Committee, which holds jurisdiction over the CFTC, is scheduled to hold its hearing on January 27. Any amended version approved there must then be reconciled with the Senate Banking Committee’s bill, which oversees the SEC and has encountered its own setbacks.
Only after harmonization would a final bill advance to the Senate floor, where it would require 60 votes to pass-meaning unanimous Republican support plus backing from several Democrats.
Banking Committee Setbacks and Stablecoin Tensions
Momentum slowed last week when the Senate Banking Committee postponed its markup after Coinbase withdrew support. The exchange cited concerns over tokenized equities, restrictions on DeFi, the division of authority between the SEC and CFTC, and-most controversially-stablecoin rewards.
That issue has become a flashpoint between banks and crypto firms. Banking groups argue that allowing platforms to offer stablecoin rewards could pull deposits away from traditional banks, especially community lenders. The debate intensified after the GENIUS Act, which bars stablecoin issuers from paying interest but does not prohibit third-party platforms from offering incentives to users.
Crypto advocates counter that banks are attempting to limit competition, noting that stablecoin reward structures were debated before GENIUS became law.
Regulatory Clarity Still Elusive
With both committees working on parallel tracks and powerful lobbying interests pulling in opposite directions, the path to a unified U.S. crypto market structure law remains uncertain. Still, the Agriculture Committee’s updated draft suggests lawmakers are narrowing disagreements, even if consensus on DeFi, stablecoins, and regulatory jurisdiction remains out of reach.
As hearings resume later this month, the question is whether Congress can bridge these divides-or whether the U.S. risks falling further behind in the global race to define crypto regulation.
