Crypto Market Structure Gets Second Chance in Senate with Agriculture Committee Draft

After a significant stumbling block in previous negotiations, the crypto market structure bill resurfaced on Wednesday with new legislative momentum. The Senate Agriculture Committee released its own draft, marking a turning point in months of intense lobbying. Unlike the previous controversial effort in the Banking Committee, this second chance promises to move more quickly up the legislative calendar, with a review hearing scheduled for next week.

A new legislative impetus after the previous stumble

The Senate Banking Committee’s version faced considerable turbulence just days ago, with a hearing hastily rescheduled. In contrast, the Committee on Agriculture opted for a different strategy: to develop its own functional text that would serve as a solid basis for discussion. John Boozman, chairman of the committee, expressed his determination to move forward: “Although differences persist on fundamental policy issues, this bill builds on our bipartisan discussion draft, incorporating input from stakeholders.”

The strategy reflects the growing political urgency. President Donald Trump signaled at an international hearing in Switzerland that the United States will soon pass sweeping cryptocurrency legislation, while his White House crypto adviser amplified the message: “It’s a matter of when, not if,” Patrick Witt wrote in X. This external pressure has accelerated the Senate’s internal timetable.

Key content: Protected developers, strengthened token regulation

The emerging draft maintains crucial provisions for the industry. Major cryptocurrency developers would not be subject to regulation like conventional financial entities, as long as they do not directly control customer assets. This legal protection has been a fundamental mission since the beginning of the negotiations.

Simultaneously, the proposal elevates the Commodity Futures Trading Commission (CFTC) as the supervisor of spot markets for tokens such as Bitcoin, which is currently trading around $85.32K. Tokens that do not qualify as securities would fall under the jurisdiction of the CFTC, creating a clearer regulatory framework for the sector.

However, the agricultural draft deliberately omits some of the more controversial sections — such as stablecoin yield provisions and illicit financing — that fall under the jurisdiction of the Banking Committee. This strategic absence allowed for a more manageable text for this second legislative opportunity.

Persistent Divisions: DeFi, Stablecoins, and Partisan Concerns

Despite formal progress, bipartisan consensus remains elusive. Democrats have expressed fundamental concerns about whether decentralized entities could adequately protect consumers. The DeFi industry has insisted that conventional regulations are impossible to implement into its operating model, while traditional lobbyists argue otherwise.

One specific dispute has generated considerable tension: the issue of whether stablecoins should be able to offer rewards to customers. Banking lobbyists warn that this could undermine traditional deposit taking. Coinbase withdrew its support for previous versions of the bill precisely because of this point and other disagreements.

In addition, Democrats have raised objections over regulatory appointments. They expressed concern about President Trump’s apparent reluctance to appoint Democrats to fill out the lists of regulatory agencies such as the CFTC and the Securities and Exchange Commission (SEC). Some Democrats have also proposed ethics bans to prevent senior officials from personally benefiting from cryptocurrency investments.

The Way Forward: Multiple Challenges in Two Committees

Despite this second chance, the bill faces significant hurdles. To become law, the final version requires the support of at least seven Democrats in the Senate. If it manages to overcome this chamber, it is anticipated that it will advance without major resistance in the House of Representatives.

The real bottleneck remains in the Banking Committee. Their legislative effort continues to be more difficult than the two ongoing negotiations, with no next hearing scheduled yet. When both versions of the bill—the farm and the banking—must be unified into a single text for general consideration by the Senate, new challenges are likely to emerge.

While the crypto industry has celebrated legislative victories in the House of Representatives — such as last year’s passage of the Digital Asset Market Clarity Act — the Senate has proven to be more contentious. This second chance at the Agriculture Committee represents a crucial turning point, but the real test will come in the coming weeks as both committees try to harmonize their radically different visions on how to structure regulatory oversight of the crypto market.