The U.S. Senate Agriculture Committee voted 12-11 on Jan. 29 to advance its version of the CLARITY Act, marking the first time a crypto market structure bill has cleared a Senate committee. The legislation would give the Commodity Futures Trading Commission clear authority over digital commodities.
Party-Line Vote 12-11
All Republican members voted in favor, while all Democrats opposed, according to multiple American media outlets. The bill, formally named the Digital Commodity Intermediaries Act, aims to solidify CFTC's role as the primary regulator for digital commodities. Industry groups hailed the vote as a milestone for crypto influence in Washington.
Democrats Slam Ethics Loopholes and DeFi Concerns
Fortune first reported that the vote exposed sharp divisions over ethics provisions and decentralized finance. Democratic lawmakers criticized Republicans for pushing the bill without bipartisan backing, arguing it lacks safeguards to prevent conflicts of interest among public officials with crypto holdings. Sen. Cory Booker of New Jersey pointed directly to President Donald Trump's blockchain ventures, saying the administration's financial ties had weakened trust. An amendment adding ethics provisions failed along party lines. Advocacy group Public Citizen labeled the bill the “gryfto” bill, suggesting politicians could personally benefit under the proposed rules.
Next Hurdle: Senate Banking Committee
The Agriculture Committee's action does not send the bill to a full Senate vote. The Senate Banking Committee must still approve its own version before lawmakers can reconcile the two measures. Disputes over stablecoin yields and the role of banks in crypto markets remain unresolved. The CLARITY Act cleared the House in July but has faced a bumpier path in the Senate. Earlier this month, a clash between the banking lobby and crypto firms over yield-bearing stablecoins led to Coinbase CEO Brian Armstrong withdrawing support, forcing the Banking Committee to delay its markup.
Industry PAC Cash Piles Up
Industry funding continues to shape the debate. Fairshake, the leading crypto-aligned super PAC network, disclosed this week that it holds $193 million in cash, including fresh contributions from Coinbase, Ripple, and Andreessen Horowitz. Republican leaders struck an optimistic tone. House Financial Services Committee Chairman French Hill said the action moves Congress closer to a bipartisan market structure framework. Agriculture Committee Chairman Glenn “GT” Thompson called the markup a key step toward final legislation. Still, without Banking Committee approval and cross-party agreement, the bill’s fate remains uncertain.