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Senate Agriculture Advances Digital Commodity Intermediaries Act

The Senate Agriculture Committee narrowly advanced its version of the CLARITY Act framework, while Senate Banking has yet to complete its markup.

MW
Marcus WebbRegulatory Affairs Editor
January 29, 20265 min read
Senate Agriculture Advances Digital Commodity Intermediaries Act

The Senate Agriculture, Nutrition, and Forestry Committee advanced its version of the digital-commodity legislation Wednesday by a narrow 12-11 vote along strict party lines, marking the first formal Senate-side movement on a comprehensive crypto market-structure bill. The Digital Commodity Intermediaries Act, as the Senate version is titled, mirrors the House CLARITY Act on CFTC jurisdiction over digital commodity intermediaries while making several technical modifications tailored to Senate Agriculture's existing oversight framework for derivatives markets.

The committee vote followed a lengthy markup hearing on Tuesday in which more than two dozen amendments were considered. Most of the contested amendments concerned the precise scope of CFTC authority over decentralized-finance intermediaries — language that several Democratic members argued was insufficiently tight on consumer-protection requirements for spot trading platforms operating without a registered intermediary. Chairman John Boozman's manager's amendment, which made several drafting clarifications to the bill's anti-fraud authorities and to the definition of a "digital commodity broker," was adopted on a 13-10 vote.

The Senate version diverges from the House CLARITY Act in several technical respects. It adopts a slightly different formulation of the Mature Blockchain Test — preserving the 20 percent threshold but adding a separate carve-out for governance tokens whose holders' voting rights are economically de minimis. It expands CFTC anti-fraud authority over spot digital commodity markets without the full registration overlay that the House bill applies to intermediaries above a certain trading-volume threshold. And it grants the SEC slightly broader continuing authority over alternative trading systems that handle assets near the security-commodity classification line. Conference committee resolution between the two versions is a meaningful, if not yet imminent, downstream step.

The Banking Committee, however, remains the choke point. Senate Banking has yet to complete its own markup of the legislation, and several previously-scheduled markup sessions have been cancelled without rescheduling. Industry lobbyists familiar with the negotiations describe the Banking-side dynamics as substantively converged on most major issues but procedurally stalled — a function of the chair's interest in ensuring all twelve Republican members and at least three Democrats are aligned before staging a formal vote. Without Banking Committee action, the bill cannot proceed to the full Senate floor.

Even if Banking moves, the broader 60-vote threshold to overcome a filibuster is a separate matter. Senior Senate Democratic leadership has not whipped against the bill, but neither has it endorsed the framework; Minority Leader Chuck Schumer's office has issued only general statements about the importance of "balanced" digital-asset legislation. The GENIUS Act benefited from a cleaner political path because stablecoin regulation enjoyed broader cross-aisle support; comprehensive market structure legislation occupies more contested terrain.

Industry observers are increasingly skeptical that a comprehensive market structure bill will be enacted before the 2026 midterms. The Agriculture Committee's vote moves the substantive legislation forward but does not change the underlying calendar mathematics: the Senate has fewer than eighty legislative days remaining before the August recess, and the post-recess window is consumed largely by appropriations and continuing-resolution work. A realistic Banking markup would need to occur before late spring for the bill to have a credible floor path. The next public test is whether Senate Banking schedules — and holds — a markup session within the next four weeks.

MW

Marcus Webb

Regulatory Affairs Editor

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