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The Senate Agriculture Committee advanced landmark crypto legislation on a party-line vote this week, granting the CFTC clearer oversight of digital commodities while exposing deep divisions over ethics and conflicts of interest in the industry.
The committee vote, which followed strict party lines, grants the Commodity Futures Trading Commission (CFTC) clearer authority over digital commodities and signals growing momentum and controversy around crypto regulation in Washington.
Republicans voted unanimously in favor, while Democrats opposed the measure, citing unresolved concerns over ethics, decentralized finance (DeFi), and potential conflicts of interest.
The advancement represents a significant procedural milestone for the crypto market structure bill, but it also underscores how politically charged the legislation has become as Congress debates the future oversight of digital asset markets.
Debate during the committee markup highlighted deep divisions over how the crypto market structure bill addresses ethics and transparency.
Democratic lawmakers argued that the legislation lacks adequate safeguards to prevent public officials from financially benefiting from crypto-related activities while shaping regulatory policy.
During the hearing, Senator Cory Booker of New Jersey pointed to the growing intersection between politics and the digital asset industry, arguing that it has complicated negotiations and weakened public trust.
“The administration’s financial ties to the crypto industry have made it harder to reach agreement on a framework people can trust,” Booker said.
An amendment that would have added explicit ethics restrictions for public officials holding crypto assets failed along party lines.
Following the vote, consumer advocacy group Public Citizen criticized the crypto market structure bill, labeling it the “gryfto” bill as a reference to concerns that politicians could personally benefit from regulatory clarity.
Republicans countered that delaying the crypto market structure bill over ethics disputes risks leaving digital commodity markets underregulated and governed by enforcement actions rather than clear rules.
They argued that defining jurisdictional authority for the CFTC is a necessary first step before addressing more complex governance issues.
The committee discussion also exposed ongoing disagreements over decentralized finance.
Democratic lawmakers warned that the crypto market structure bill could unintentionally legitimize or shield DeFi protocols without sufficient consumer protections.
Republicans rejected that view, framing the bill as technology-neutral and focused on market function rather than platform design.
Supporters said the legislation avoids prescribing how decentralized systems should operate, instead establishing baseline regulatory clarity for market participants.
Despite opposition, clearing the Agriculture Committee is widely viewed as a major win for proponents of the crypto market structure bill and the digital asset industry’s broader policy agenda.
The vote reflects crypto’s rising influence in Washington, where digital asset firms have expanded lobbying efforts and campaign spending.
Industry groups are preparing to deploy nearly $200 million in political spending ahead of the 2026 midterm elections, according to public disclosures.
Fairshake, the largest crypto-aligned super PAC network, disclosed this week that it holds $193 million in cash, including contributions from Coinbase, Ripple, and venture capital firm Andreessen Horowitz.
While the committee vote is a breakthrough, the crypto market structure bill is far from becoming law.
The Senate Banking Committee must still advance its own digital asset legislation before the two chambers can reconcile differences and move toward a full Senate vote.
Key disputes remain unresolved, including rules for yield-bearing stablecoins, the role of traditional banks in crypto markets, and how consumer protections should apply across centralized and decentralized platforms.
The House version of the CLARITY Act passed in July, but momentum stalled in the Senate earlier this month following disagreements between crypto firms and banking lobbyists.
Reports indicated that Coinbase CEO Brian Armstrong temporarily withdrew support over proposed limits on stablecoin yields, prompting delays in Banking Committee deliberations.
House Financial Services Committee Chairman French Hill framed the Agriculture Committee vote as progress toward regulatory clarity.
“This moves us closer to delivering a workable market structure that protects consumers and keeps innovation in the United States,” Hill said.
For policymakers, the coming months will test whether Congress can bridge ethical, regulatory, and jurisdictional divides.
For the digital asset industry, the fate of the crypto market structure bill may determine whether the US finally establishes a clear framework for digital commodity markets or remains locked in regulatory uncertainty as innovation continues to outpace legislation.
