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US Senate Crypto Bill Heads to Markup Without Democrat Support

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The Senate Agriculture Committee has released up to date crypto market construction laws and scheduled a markup for January 27 regardless of failing to safe Democratic backing, marking a possible shift towards partisan passage after months of bipartisan negotiations stalled.

Chairman John Boozman introduced the legislative textual content yesterday, acknowledging that “variations stay on elementary coverage points” whereas expressing gratitude for collaboration with Senator Cory Booker.

“Although it’s unlucky that we couldn’t attain an settlement, I’m grateful for the collaboration that has made this laws higher,” Boozman stated, noting the markup will proceed at 3 p.m. within the Russell Senate Office Building.

Legislative Path Narrows as Banking Panel Delays CLARITY Act

The Agriculture Committee’s determination to advance its Digital Commodity Intermediaries Act comes because the Senate Banking Committee postponed work on the parallel CLARITY Act until late February or March, in accordance to sources.

The Banking panel has pivoted to housing laws following President Trump’s push for affordability, with the president writing that he’s taking “quick steps” on the housing invoice, which stays a precedence and “American Dream.”

That delay adopted Coinbase CEO Brian Armstrong’s public withdrawal of support over provisions he referred to as “catastrophic,” together with restrictions on tokenized equities and stablecoin yield.

Patrick Witt, White House Executive Director of the President’s Crypto Council, pushed back towards Armstrong’s “no invoice is best than a foul invoice” stance, warning that delaying laws dangers future Democratic lawmakers writing “punitive laws within the wake of a disaster, à la Dodd-Frank.”

“You won’t love each a part of the CLARITY Act, however I can assure you’ll hate a future Dem model much more,” Witt wrote.

Meanwhile, President Trump confirmed at Davos 2026 that he expects to signal crypto market construction laws “very quickly,” stating his administration is working to guarantee “America stays the crypto capital of the world.“

Democratic opposition has intensified over ethics considerations, with Senator Adam Schiff demanding controls masking the White House and Senator Ruben Gallego calling ethics guardrails “a purple line.”

Key Differences Between Competing Bills Shape Industry Response

The up to date invoice diverges from Banking’s CLARITY Act on a number of essential factors, significantly concerning stablecoin yield, which has been the only greatest supply of business division.

CLARITY’s Section 404 explicitly prohibits digital asset service suppliers from paying curiosity or yield solely for holding fee stablecoins, although it permits “activity-based” rewards for transactions, loyalty applications, staking, or governance participation.

The new invoice takes a essentially completely different strategy by excluding “permitted fee stablecoins” from CFTC authority totally, deferring regulation to frameworks just like the GENIUS Act fairly than setting particular yield guidelines.

Notably, the invoice additionally explicitly classifies meme cash as digital commodities beneath CFTC jurisdiction, defining them as property “impressed by web memes, characters, or present occasions, the place promoters search to entice an enthusiastic group primarily for speculative functions.“

An excerpt of the Republican draft crypto invoice. | ource: Senate Agriculture Committee

CLARITY as a substitute introduces “ancillary property” ideas with exemptions for tokens that have been principal property of ETFs listed as of January 1, 2026.

On developer protections, the invoice establishes an Office of the Digital Commodity Retail Advocate inside the CFTC, whereas CLARITY creates a CFTC-SEC Micro-Innovation Sandbox for small companies.

Both shield software program builders from regulation, although CLARITY’s Section 604 sparked warnings from Judiciary Committee leaders Chuck Grassley and Dick Durbin that it might “materially restrict prosecutors’ skill to pursue monetary crime circumstances.“

Banking Lobby Secures Stablecoin Restrictions Amid Industry Split

The stablecoin yield debate has uncovered deep rifts between crypto platforms and conventional banks.

Bank of America CEO Brian Moynihan just lately warned that as a lot as $6 trillion in deposits (roughly 30% to 35% of US industrial financial institution deposits) might migrate into stablecoins, whereas JPMorgan CFO Jeremy Barnum referred to as yield-bearing stablecoins “a parallel banking system that features one thing that appears loads like a deposit that pays curiosity, with out the related safeguards.“

Galaxy Digital additionally warned that Banking’s draft might grant Treasury “Patriot Act–fashion” surveillance powers, together with authority to freeze transactions for up to 30 days with out court docket orders.

Given this rising friction with banks, Armstrong said Coinbase is exploring compromises with them throughout Davos talks, stating, “we’re going to proceed to work available on the market construction laws, and meet with a few of the financial institution CEOs to work out how we are able to make this a win-win.“

Despite regulatory uncertainty, Clear Street analyst Owen Lau noted that “institutional use circumstances proceed to broaden even and not using a favorable Clarity Act,” pointing to continued blockchain adoption by main monetary establishments.

The submit US Senate Crypto Bill Heads to Markup Without Democrat Support appeared first on Cryptonews.

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