Senator Shelves Card Fee Fight to Save Crypto Bill From Collapse – Will It Pass Now?

A major political roadblock just vanished—and the crypto industry's landmark legislation might finally have a path forward.

The Strategic Retreat

In a move that stunned traditional finance lobbyists, a key senator dropped a contentious push to cap credit card interchange fees. That fight was threatening to tank a broader, must-pass spending package—the same vehicle carrying crucial digital asset regulations. The concession clears a major hurdle, freeing lawmakers to focus on the crypto provisions without the baggage of a separate, divisive battle.

What's At Stake

The bill in question aims to establish clear regulatory guardrails for digital assets, something the industry has demanded for years. It would define jurisdiction between the SEC and CFTC, create frameworks for stablecoins, and offer much-needed legal certainty. Proponents argue it’s essential for U.S. competitiveness; critics warn it creates dangerous loopholes. The senator's tactical withdrawal suggests the political calculus has shifted: crypto's potential economic upside now outweighs a decades-old fight over banking fees—at least for this round.

The Final Hurdle

With the card fee fight sidelined, the bill's fate rests on last-minute coalition-building. Support needs to bridge partisan divides and overcome skepticism from both crypto-skeptical progressives and old-guard banking defenders. The coming days will test whether the political will exists to turn a long-debated framework into actual law. One veteran DC observer quipped, 'They moved heaven, earth, and a senator's pet project—all to maybe, possibly, regulate digital beans. Wall Street must be so proud.'

The window is open, but slamming shut fast. This could be the moment crypto regulation goes mainstream, or just another chapter in DC's endless game of kick-the-can.

White House Clears Internal Obstacle as External Threats Mount

White House officials became directly involved in preventing the amendment’s consideration, with one source confirming the Marshall provision WOULD have “” passage of the crypto bill the administration is pressing to advance through committee.

Durbin, who co-sponsored the credit card measure alongside Senator Peter Welch, is not currently expected to offer the amendment at the markup, though no final decision has been made.

While the credit card dispute now appears resolved, the Thursday markup faces a potentially more serious threat from Washington’s looming budget crisis.

Congress is racing toward a partial government shutdown deadline this weekend, with Senate Democrats blocking a $1.3 trillion appropriations package following a deadly Minneapolis shooting by a Border Patrol agent.

The standoff threatens to furlough hundreds of thousands of federal workers and could disrupt the legislative calendar just as crypto legislation reaches a critical juncture.

Former Utah Governor Gary Herbert called the shutdown threat evidence of “a lack of leadership, a lack of ability to work together.“

Agriculture Bill Advances Despite Partisan Fractures and Timing Risks

Despite these challenges, the Agriculture Committee’s markup represents the first formal Senate vote on comprehensive legislation to reform the crypto market structure after months of delays across multiple committees.

The bill would expand the Commodity Futures Trading Commission’s authority over digital commodities, including Bitcoin, though Chairman John Boozman released the text without securing Democratic support after bipartisan negotiations collapsed.

“Although it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better,” Boozman said, acknowledging that “differences remain on fundamental policy issues.“

Senate Agriculture Committee advances crypto bill for January 27 markup without Democratic support as Banking delays CLARITY Act over stablecoin disputes.#ClarityAct #Stablecoinhttps://t.co/Wjz1vpYh5d

The committee’s decision to proceed reflects growing urgency as alternative legislative paths have stalled.

The Agriculture Committee’s legislation has become the primary vehicle for crypto regulation after the Senate Banking Committee postponed its parallel CLARITY Act until late February or March, instead pivoting to housing legislation following President Trump’s affordability push.

Banking’s bill stalled after Coinbase CEO Brian Armstrong withdrew support over restrictions on tokenized equities and stablecoin rewards, calling certain provisions “.”

Trump Pushes for Passage as Democrats Demand Ethics Guardrails

President TRUMP confirmed at Davos that he expects to sign crypto market structure legislation “” stating his administration is working to ensure “America remains the crypto capital of the world.“

His public pressure comes as Democratic opposition has intensified over ethics concerns, with Senator Adam Schiff demanding controls covering the WHITE House and Senator Ruben Gallego calling ethics guardrails “a red line.“

Beyond partisan divisions, the Thursday markup must navigate the same budget crisis threatening to shut down parts of the federal government.

If Congress fails to pass the appropriations package by Saturday, agencies including DHS and the Pentagon would enter shutdown mode, potentially delaying legislative business and forcing senators to prioritize budget negotiations over crypto regulation.

Patrick Witt, White House Executive Director of the President’s Crypto Council, has urged immediate passage despite imperfect provisions, warning that delays risk “punitive legislation in the wake of a crisis, à la Dodd-Frank” under future Democratic control.

₿ Patrick Witt argues that “no bill is better than a bad bill” it is a “privilege” to say because of Trump's pro-crypto administration.#PatrickWitt #CryptoMarketStructureBill #CryptoLegislationhttps://t.co/KmaS7NL4cE

“You might not love every part of the CLARITY Act, but I can guarantee you’ll hate a future Dem version even more,” Witt wrote.

Earlier this month, Investment bank TD Cowen also warned the legislation could slip to 2027 as lawmakers position for midterm elections, with full implementation potentially delayed until 2029.

The combination of shutdown risks, partisan ethics disputes, and electoral timing creates a narrow window for passage that Thursday’s markup may represent the industry’s best opportunity to secure regulatory clarity before political conditions deteriorate further.