Senator John Boozman, chair of the Senate Agriculture Committee, has confirmed that a deal has not yet been reached with Democrats on the cryptocurrency bill. Despite ongoing negotiations and efforts to bridge the gap, bipartisan support for the legislation remains elusive.
Boozman recently released the latest text of a crypto market structure bill, which aims to grant the Commodity Futures Trading Commission (CFTC) new regulatory powers over digital commodities. The proposed legislation is based on previous bipartisan discussions. He anticipates advancing the bill in a review meeting scheduled for next Tuesday at 3 PM Eastern Time.
Several sticking points have contributed to the lack of agreement between Democrats and Republicans on the committee. These include disagreements over whether meme coins should be included in the definition of "digital commodities," overall listing standards and how different tokens fit under that definition, funding for the CFTC to oversee crypto, and the inclusion of ethics provisions. Democrats have also pressed for stronger consumer protections and ethics measures, as well as calling for the White House to fill bipartisan seats at regulatory agencies like the CFTC.
According to sources, the cryptocurrency industry is bracing for the possibility that the newest U.S. crypto market regulation will be a Republican-led, partisan initiative. While negotiations among lawmakers are ongoing and the final outcome remains uncertain, the expectation is that the bill will largely reflect language favorable to the crypto sector. For example, it is anticipated that crypto developers will not be classified as regulated financial entities under the new legislation.
The lack of Democratic support could complicate the years-long lobbying efforts and significant financial investments made by crypto advocates. A bill backed solely by Republicans may struggle to secure enough votes in the full Senate, where at least seven Democratic votes are typically required to advance legislation.
The Agriculture Committee is scheduled to hold a markup session on Tuesday, during which lawmakers will debate amendments and decide whether to send the bill to the full Senate. This step is crucial in the legislative process and could set the stage for the bill's final passage.
Analysts at TD Cowen have warned that the bill could be delayed until 2029 due to President Donald Trump's cryptocurrency ventures. Democrats are seeking provisions that would prevent senior government officials and their families, including Trump, from owning or operating cryptocurrency businesses. Trump has generated roughly $620 million from ventures tied to his family, including World Liberty Financial, a DeFi and stablecoin project listing Trump and his three sons as co-founders.
Senator Boozman stated, "This schedule promotes transparency and allows for a thorough review as we advance legislation to bring clarity and certainty to crypto markets". If concerns from crypto lobbyists prove true and Democrats withhold support, negotiations will likely continue between the parties, especially if both committee versions must be reconciled into a single bill. Industry insiders also recognize that not all Republicans on Boozman's committee are fully supportive.
