Breaking: Senate Agriculture Committee Drops Crypto Market Structure Draft Bill - Markup Scheduled for January 27

Washington just fired the starting gun on crypto's regulatory future.

The Legislative Blueprint

Forget vague promises—this is a concrete draft. The Senate Agriculture Committee, a key player in commodities oversight, has formally unveiled its proposed framework for digital asset markets. The text lays out definitions, exchange obligations, and custody rules, aiming to carve a path between stifling overreach and dangerous ambiguity. It's the first major legislative text of the year targeting the asset class head-on.

The Political Calendar

Mark your calendar for January 27. That's when committee members get their red pens out. The markup session will see lawmakers debate, amend, and potentially advance the bill—a critical step toward a full Senate vote. The timing is aggressive, signaling a push to move before election-year politics freeze everything. It’s a tight window, and the industry is scrambling to read the fine print.

Market Mechanics in the Crosshairs

The Bottom Line

Clarity is coming, ready or not. This bill could define the rules of the game for US crypto exchanges, token issuers, and institutional investors. Passage is far from guaranteed, but the mere act of drafting forces the conversation from theoretical to tactical. For an industry used to operating in gray areas, the specter of black-and-white law is both a threat and an opportunity—finally, a rulebook to play by, or lobby against. After all, what's finance without a good old-fashioned regulatory scramble?

Stablecoin Yield Regulations Excluded

The Agriculture Committee’s version of the bill primarily addresses regulations under the Commodity Futures Trading Commission (CFTC), which would gain expanded authority to regulate cryptocurrencies like Bitcoin (BTC) and ethereum (ETH). 

In contrast, the Senate Banking Committee’s section of the legislation focuses on the Securities and Exchange Commission (SEC) and its oversight. Notably, the Agriculture draft allocates $150 million to support the CFTC in the implementation of the proposed law.

Market expert James Murphy reviewed the key provisions of the new draft and expressed Optimism about its implications. He highlighted that the bill creates a pathway for decentralized finance (DeFi) to avoid CFTC regulation, providing important protections for developers and specific service providers from liability. 

The Senate Agriculture Committee’s draft also excludes any regulations concerning stablecoin yields. This decision is significant, particularly as it addresses a critical provision that resulted in Coinbase (COIN) withdrawing its support for the Banking Committee’s version of the bill last week. 

The Banking Committee’s version of the CLARITY Act aims to limit the yield that stablecoin platforms can offer. While banks support this approach due to concerns about deposits potentially flowing out, crypto firms oppose it, arguing that such restrictions hinder competition. 

In contrast, the Agriculture Committee bill seeks to exempt stablecoins from CFTC regulations and relies on existing frameworks like the already passed stablecoin bill, or GENIUS Act, which mandates that stablecoins be fully backed.

Banking Committee Delays Crypto Bill’s Consideration

Senate Agriculture Chair John Boozman expressed appreciation for the collaborative efforts among lawmakers, particularly mentioning Senator Cory Booker and his staff for their contributions to consumer protections and CFTC authority. 

Despite the remaining differences in fundamental policy issues with its Democratic counterpart, the Committee’s chair emphasized the importance of moving the bill forward:

While it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better. It’s time we MOVE this bill, and I look forward to the markup next week. 

But amid the broader cryptocurrency industry’s optimism surrounding the Agriculture Committee’s version of the market structure bill, the timeline for advancing the overall legislation remains uncertain. 

Bloomberg reported that the Senate Banking Committee is expected to delay consideration of its own portion of the bill, which could push discussions into late February or even March.

Featured image from OpenArt, chart from TradingView.com