The long‑anticipated crypto market structure legislation known as the CLARITY Act cleared a significant procedural step on Thursday, after the Senate Agriculture Committee approved its portion of the bill during a scheduled markup earlier in the day.
CFTC Authority Over Crypto AdvancesThe version approved by the Agriculture Committee would expand the Commodity Futures Trading Commission’s (CFTC) authority over the crypto sector, granting it oversight of spot trading in digital commodities. However, the bill’s path is far from complete.
The agriculture panel’s proposal must eventually be combined with a separate section addressing the Securities and Exchange Commission’s (SEC) role, which falls under the jurisdiction of the Senate Banking Committee. Only after the two pieces are merged can the broader legislation move ahead in the Senate.
Thursday’s vote followed months of negotiations between Senate Agriculture Committee Chair John Boozman, a Republican from Arkansas, and Senator Cory Booker, a Democrat from New Jersey.
Those talks failed to produce a bipartisan agreement, prompting Boozman to move forward with a Republican‑only version of the bill. He said the discussions stalled due to what he described as “fundamental policy disagreements.”
Senate Panel Rejects Democratic AmendmentsDuring the markup, the committee also rejected several Democratic‑backed amendments, all along party lines. Among them was a proposal from Senator Michael Bennet of Colorado that would have barred federal officials and their immediate family members from issuing or endorsing digital assets.
Republicans also voted down two amendments introduced by Senator Dick Durbin of Illinois. One sought to strengthen enforcement against fraud involving cryptocurrency ATMs, while the other aimed to prevent certain crypto firms from being eligible for federal bailouts.
With the Agriculture Committee’s approval secured, the CLARITY Act now advances to its next, more complex phase. Lawmakers must reconcile the CFTC‑focused provisions with parallel legislation under the Banking Committee’s oversight, while also determining whether bipartisan support can still be salvaged for a bill that could fundamentally reshape crypto regulation in the United States.
Featured image from OpenArt, chart from TradingView.com
