The Senate Agriculture Committee has taken a significant stride in the legislative process surrounding the cryptocurrency market by publishing its draft crypto market structure legislation. This step brings the committee closer to addressing the House of Representatives’ Clarity Act, which seeks to clarify the oversight responsibilities of the Commodity Futures Trading Commission (CFTC) in relation to spot market trading.
While the draft bill includes sections with unresolved details—marked by brackets—the legislation represents a pivotal move toward defining the boundaries between the CFTC’s and the Securities and Exchange Commission’s (SEC) jurisdictions. As federal agencies intensify their efforts to establish guidelines for crypto companies and related services operating within the U.S., clarity on this jurisdictional divide becomes essential, necessitating congressional intervention.
The legislative process, however, faces challenges. The Senate’s capacity to address multiple crucial issues is limited, especially due to the ongoing budget dispute that has resulted in a government shutdown. According to insiders, Senate staffers were diligently refining the bill over the weekend, even as lawmakers negotiated a deal to restore government funding. Although a procedural hurdle for this deal was cleared on Sunday, both the Senate and the House have yet to cast their votes on the necessary continuing resolution.
The draft, which has been spearheaded by committee Chairman John Boozeman and senior Democrat Cory Booker, aims to define essential terms such as “blockchain” and explore their implications under the Commodity Exchange Act. It also instructs the CFTC to collaborate with the SEC on joint rulemaking, addressing matters such as portfolio margining of securities and the oversight of intermediaries within the crypto market.
Some aspects of the draft remain contentious, as indicated by various bracketed sections. One contentious point raised by the minority party suggests that the Agriculture Committee may lack sufficient jurisdiction regarding specific laws, which has prompted discussions with the Banking Committee to resolve the issue. Additionally, internal debate exists regarding the CFTC’s leadership, currently headed by acting chair Caroline Pham.
In response to the draft, Amanda Tuminelli, Executive Director of the DeFi Education Fund, expressed hope that provisions addressing decentralized finance (DeFi) will include strong protections for developers, clearly distinguishing them from centralized intermediaries.
Coordination is crucial as the Agriculture Committee, which oversees the CFTC, and the Senate Banking Committee, responsible for the SEC, both push forward with their respective legislation. However, there is apprehension among lawmakers about progressing to the markup stage—where bills are amended before final committee votes—amid disagreements, particularly from certain Senate Republicans.
Despite a significant contingent of Democrats advocating for a collaborative approach to pass the bill, concerns persist, notably from Senator Elizabeth Warren, regarding the potential risks associated with the crypto industry and conflicts of interest stemming from President Trump’s financial ties to the sector.
The timeline for advancing the crypto market structure legislation has proven fluid among stakeholders, with initial deadlines shifting from August to September, and now pushed to the end of the year—or possibly beyond. Although recent talks among crypto executives and lawmakers have reignited legislative discussions, experts predict that it could take weeks or even months for the bills to progress within the committees and reach the Senate floor.
Ron Hammond, head of Policy and Advocacy at Wintermute, believes that it’s conceivable for one or both committees to vote on their respective bills by year-end; however, the subsequent step involves integrating these bills and navigating the resultant political landscape. A vote on the Senate floor might not occur until the first quarter of 2026, contingent upon the developments in the legislative process.
