Senate Panel Advances Market Structure Bill in Narrow Party-Line Vote
- Senate Agriculture Committee advanced a crypto market structure bill on a 12–11 party-line vote.
- The bill would expand CFTC authority over digital commodities and spot crypto markets.
- Senate Banking Committee approval is still required before the measure reaches the full Senate.
A closely divided vote in Washington marked a turning point for U.S. cryptocurrency regulation, as lawmakers moved a long-debated market structure proposal forward for the first time. The development signals growing pressure on Congress to establish clear rules for digital assets amid years of regulatory overlap, court battles, and industry uncertainty.
According to reports, the Senate Agriculture Committee approved the Digital Commodity Intermediaries Act on a 12–11 party-line vote, with Republicans in favor and Democrats opposed. The measure would expand the authority of the Commodity Futures Trading Commission over digital commodities and spot crypto markets. While the margin was narrow, the outcome was historic: no crypto market structure bill had previously cleared a Senate committee.
A First Step Toward Defining Crypto Oversight
The bill aims to resolve long-standing jurisdictional uncertainty between the CFTC and the Securities and Exchange Commission. Under the proposal, digital assets that meet the definition of “digital commodities” would primarily fall under CFTC supervision rather than securities law.
As a result, trading platforms dealing in those assets would need to register with the agency and follow requirements covering disclosures, customer protections, and market integrity. Supporters argue the framework mirrors oversight already used in traditional commodities markets while adapting it to blockchain-based assets.
Most acknowledge that clearer lines of authority would reduce compliance confusion and provide more consistent enforcement across the industry. According to committee Republicans, the absence of a defined structure has allowed misconduct to persist while pushing legitimate innovation outside the United States.
Committee Chair John Boozman said during the markup that the vote reflects recognition that existing financial laws no longer fit modern digital markets. He argued that clearer guardrails could protect consumers while supporting innovation, pointing to concerns such as fraud linked to crypto ATMs that lawmakers say require more focused oversight.
Democratic Opposition and Ethics Concerns
On the other hand, Democrats on the panel opposed the legislation, citing concerns about ethics standards and investor protection. Several lawmakers argued the bill does not sufficiently address conflicts of interest involving public officials or strengthen safeguards against market manipulation.
They also warned that shifting expanded responsibilities to the CFTC could strain an agency historically focused on derivatives rather than retail-facing markets. Cory Booker said Democratic objections centered on what he described as inadequate ethics provisions, including the absence of restrictions on public officials’ involvement in the crypto sector.
As a result, Democrats proposed amendments that would have barred elected officials, including the president, from engaging in digital asset activities and addressed exposure to foreign adversaries. However, none of those amendments were adopted, with Boozman stating that such matters fall outside the committee’s jurisdiction.
Despite the partisan divide, some Democrats had previously expressed optimism that a market structure bill could advance. Kirsten Gillibrand had earlier said she was confident the committee would move forward, underscoring the complex political balance surrounding crypto legislation.
Related: UAE Central Bank Approves First US Dollar Stablecoin
What Happens Next
Notably, the Agriculture Committee’s vote does not send the bill directly to the floor. Instead, the Senate Banking Committee must still consider its version of a broader market structure package, often referred to as the CLARITY Act.
That package includes provisions involving the SEC, stablecoin oversight, and additional consumer protections. A scheduled Banking Committee vote earlier this month was postponed after industry opposition, including from Coinbase, and a new date has not been announced.
Only if both committees approve their respective sections can lawmakers reconcile the measures and bring a unified bill before the full chamber. Observers note that unresolved issues, such as stablecoin yield rules, the role of banks in crypto markets, and oversight of decentralized finance, remain obstacles.
Still, the narrow vote marks a significant procedural milestone. It reflects a shift from years of stalled debate toward concrete legislative action, even as sharp divisions persist over how digital asset markets should be governed.
