Bipartisan Senate Crypto Alliance Collapses, Leaving Key Developer Protections in Limbo

Senate Agriculture Chair John Boozman has released updated crypto market structure legislation, hardening a political divide that jeopardizes bipartisan cooperation. The draft bill, posted late Wednesday, sets a clear path for committee markup next week but reveals fractures in the Boozman-Booker alliance.

The legislation's partisan trajectory complicates Senate Banking Committee negotiations, where Democrats had hoped for consensus. With Boozman's unilateral move, the Senate Agriculture Committee now controls the immediate legislative calendar—text will advance to markup on January 27 regardless of cross-aisle support.

Market participants now face two divergent paths: either a compromised version emerges during markup, or competing bills from Agriculture and Banking committees set up a protracted reconciliation process. The outcome will determine whether software developer protections—a key industry priority—survive in final legislation.