The regulation of the crypto market gets a second chance law in the Senate after the push from the Agriculture Committee

The U.S. Senate Agriculture Committee has rekindled industry hopes in crypto by introducing a new bill on the structure of the cryptocurrency market. This new version of the second chance law comes after previous failed attempts in the Banking Committee, offering a renewed perspective on how federal regulators will oversee the digital asset sector.

New legislative momentum after the Agriculture Committee’s passage

The draft recently presented by the Agriculture Committee marks a significant shift in crypto regulation negotiations. Unlike earlier versions that faced controversy and postponed hearings, this bill represents months of collaborative effort. Committee Chairman John Boozman expressed his determination to move forward: “It’s time to push this legislation forward, and I look forward to the review session next week.”

The scheduled hearing will allow lawmakers to analyze in detail how to structure federal oversight of the crypto market. Although fundamental differences remain between the parties, the new text incorporates contributions from various stakeholders, demonstrating bipartisan effort in its development.

Regulatory framework: CFTC as spot market supervisor

A key feature of this second chance law is the assignment of specific regulatory roles. The Commodity Futures Trading Commission (CFTC) would assume the role of overseeing spot markets for tokens like Bitcoin, which do not qualify as securities under U.S. regulation.

Importantly, the bill maintains a legal shield for cryptocurrency developers, provided they do not directly control customer assets. This provision aims to create a viable legal space for decentralized finance (DeFi) platforms to operate without the restrictions that would apply to traditional financial institutions.

The current price of Bitcoin hovers around $88,080, reflecting market uncertainty ahead of imminent regulatory changes.

The political dilemma: bipartisan support vs. Republican control

Although the Agriculture Committee’s bill maintains bipartisan aspirations, its development has been predominantly led by Republicans. Democrats, whose votes will be essential for final approval in the Senate, have expressed concerns about several key aspects.

From a Democratic perspective, questions remain about how consumer protection will be adequately ensured in DeFi ecosystems. Additionally, some lawmakers have raised objections to the current administration’s apparent reluctance to appoint Democrats to key regulatory positions within the CFTC and the Securities and Exchange Commission.

For the second chance law to succeed, it will need the support of at least seven Democrats in the Senate. This requirement underscores the critical importance of negotiations in the next phase.

Points of friction: stablecoins, tokenized stocks, and deposit protection

One of the main conflicts revolves around whether stablecoins can offer rewards to depositors. Banking pressure groups argue that this capability would threaten traditional deposit-taking by U.S. banks. The controversy was serious enough for Coinbase to withdraw support for earlier versions of the bill.

Meanwhile, the Securities and Exchange Commission clarified its stance on tokenized stocks. The SEC indicated that these are subject to existing securities and derivatives regulations, regardless of whether they operate on a blockchain. This guidance draws a line between issuer-backed tokenized securities—which can represent genuine equity ownership—and third-party products that typically only offer synthetic exposure.

The regulatory strategy apparently aims to curb the proliferation of synthetic products among retail investors while promoting fully regulated and issuer-approved tokenization structures.

Market outlook and consolidation of native crypto assets

The legislative landscape also impacts how new crypto projects emerge. Platforms like Pudgy Penguins are establishing themselves as solid NFT brands in this market cycle, evolving from speculative digital luxury goods to multi-channel ecosystems. With retail sales exceeding $13 million and over one million units sold, these projects will heavily depend on the regulatory framework emerging from these new laws.

Path to approval: pending stages and timeline

The second chance law still faces several hurdles before becoming law. The Agriculture Committee’s version is just the first of two perspectives that will eventually need to be unified. The Banking Committee still needs to complete its deliberations, a process likely to be more contentious given divisions over issues like stablecoins and illicit financing.

Once both committees approve their respective versions, the legislation will need to reconcile into a unified bill. If this bill passes the Senate with the required support, it is widely expected to be approved by the House of Representatives without major obstacles, based on its prior approval of similar market clarity laws.

Optimistic statements from the executive branch

President Donald Trump recently stated before a global audience that the United States will soon pass comprehensive crypto legislation. White House crypto advisor Patrick Witt amplified this message: “It’s a matter of when, not if.” This statement reflects the conviction that a multi-billion industry cannot remain indefinitely without a comprehensive regulatory framework.

The second chance law essentially represents an acknowledgment of this reality in Congress, potentially marking a turning point toward coherent federal regulation of the U.S. crypto market.