Senate Advances Crypto Bill Without Democratic Backing Amid Partisan Divide
Washington, D.C.
Generally, a new chapter in U.S. crypto regulation is unfolding, the Senate Agriculture Committee pushes a controversial market structure bill even though Democrats aren’t on board, which is pretty interesting.
Partisan Legislation Moves Forward
Normally, the committee, led by Chairman John Boozman (R‑Ark.), dropped updated text for the Digital Commodity Intermediaries Act on Wednesday and set a markup for Jan 27, i think thats a big deal.
Boozman said it’s sad we couldn’t reach a bipartisan deal, yet he thanked Senator Cory Booker (D‑N.J.) for the work that improved the bill, which is kinda cool.
Obviously, the markup will happen at 3 p.m. in the Russell Senate Office Building, and i’ll be watching closely, you should too.
Banking Committee Delays Competing Bill
Meanwhile, the Senate Banking Committee put the CLARITY Act on hold, pushing it back to late February or maybe March, thats a pretty big delay.
Apparently, they’re shifting focus to housing after the White House pressure, and President Trump said housing is now a top priority, which is pretty important.
Clearly, that move temporarily sidelines crypto regulation in the banking panel, which is kinda disappointing.
Industry Divisions and Controversies
Coinbase CEO Brian Armstrong pulled his support for the CLARITY Act, calling some provisions “catastrophic”, which is a pretty strong statement.
Evidently, he worries restrictions on tokenized equities and stable‑coin yield will choke innovation, which is a valid concern.
Patrick Witt of the President’s Crypto Council warned that doing nothing now could bring even harsher rules later, which is something to think about.
Witt wrote, “you might not love every part of the CLARITY Act, but you’ll hate a future Democratic version even more”, which is a pretty bold claim.
At Davos 2026, Trump sounded upbeat, saying “we expect to sign crypto market structure legislation very soon”, which is pretty exciting.
Ethics Concerns and Political Tensions
Generally, Democrats are firing up over ethics, with Sen. Adam Schiff demanding stricter oversight of the White House, which is pretty understandable.
Obviously, Sen. Ruben Gallego called ethics guardrails “a red line” in any deal, which is a pretty strong stance.
Apparently, the Agriculture Committee bill differs from CLARITY on stable‑coin yield: CLARITY bans interest on payment stablecoins, while the new bill lets “permitted payment stablecoins” stay out of CFTC jurisdiction, which is a pretty big difference.
Meme Coins and Developer Protections
Normally, one notable line in the Agriculture bill labels meme coins as digital commodities under CFTC control, which is pretty interesting.
Evidently, meme coins are defined as assets “inspired by internet memes, characters, or current events,” mostly for speculation, which is kinda funny.
Clearly, the CLARITY Act, on the other hand, creates “ancillary assets” exemptions for tokens tied to ETFs existing Jan 1 2026, which is a pretty big deal.
Generally, both bills protect software developers, yet Section 604 of CLARITY drew criticism from Senate Judiciary leaders Chuck Grassley and Dick Durbin, who warned it could limit prosecutors, which is a pretty valid concern.
Stablecoin Yield Debate Exposes Industry Rifts
Obviously, Bank of America’s CEO Brian Moynihan warned up to $6 trillion could flee to stablecoins if yield options go wild, which is a pretty scary thought.
Apparently, JPMorgan CFO Jeremy Barnum called yield‑bearing stablecoins a “parallel banking system” lacking traditional safeguards, which is a pretty big concern.
Evidently, Galaxy Digital sounded alarm about CLARITY giving the Treasury power to freeze transactions for 30 days without court order, which is a pretty big deal.
Normally, Armstrong says Coinbase is talking with bank CEOs at Davos to find a win‑win compromise on market‑structure legislation, which is a pretty positive development.
Institutional Adoption Continues Despite Uncertainty
Generally, even with the regulatory fog, institutions keep digging into blockchain, which is a pretty interesting trend.
Obviously, Owen Lau of Clear Street notes that “institutional use cases keep expanding even without a friendly CLARITY Act”, which is a pretty positive sign.
Apparently, as the Agriculture Committee prepares its markup, the U.S. crypto‑regulation path stays uncertain, but the debate is far from over, which is a pretty good thing.
