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Momentum is building in the US Senate around long-awaited cryptocurrency regulation after the Senate Agriculture Committee advanced a market structure bill, setting the stage for renewed bipartisan negotiations. Despite Democrats withdrawing support from the version approved last week, committee chairman John Boozman signaled a strong intent to finalize legislation this year.
The Senate Agriculture Committee voted along party lines on January 29 to advance a bill aimed at creating a national regulatory framework for digital assets under the oversight of the Commodity Futures Trading Commission.
The proposal builds on the CLARITY Act, which passed the House of Representatives last summer with bipartisan backing.
Boozman acknowledged the setback after Democratic senators, including Cory Booker, stepped away from the draft.
Booker cited concerns that the bill had diverged from a bipartisan framework unveiled in November and raised objections related to President Donald Trump’s involvement in the crypto space.
Nevertheless, Boozman said negotiations with Democrats resumed immediately following the vote.
Attention has now shifted to the Senate Banking Committee, whose companion bill is still in development. Progress has been slowed by disagreements over whether crypto firms should be allowed to offer yield-like rewards on stablecoins.
The debate intensified this week after White House crypto advisor Patrick Witt convened a closed-door meeting between banking executives and crypto industry leaders.
Sources familiar with the discussions said stablecoin rewards dominated the agenda, with banks arguing such incentives resemble interest-bearing deposits, while crypto firms view them as essential to competition and innovation.
Coinbase CEO Brian Armstrong has said he couldn’t support the Senate Banking Committee’s text because of “draft amendments that would kill rewards on stablecoins, allowing banks to ban their competition.”
The White House has reportedly set an end-of-month deadline for stakeholders to reach a compromise on the issue.
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Boozman characterized the stablecoin rewards debate as a “significant contention,” but said concerns on both sides are valid and solvable.
Approval from the Senate Banking Committee is essential for advancing crypto legislation, and failure to bridge differences could delay regulation further.
Still, the Agriculture Committee vote has injected new urgency into the process, raising expectations that 2026 could mark a turning point for US crypto oversight if lawmakers can align competing interests.
