U.S. Senate Agriculture Committee Releases Crypto Bill as CLARITY Act Faces Weeks-Long Delay

Agriculture Committee Unveils Crypto Framework

The Senate Agriculture Committee released its contribution to comprehensive cryptocurrency legislation, detailing how regulatory authority over digital assets would be divided between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) ^[2]. The committee has scheduled a markup session for January 27 at 3:00 PM ET, where lawmakers may propose amendments before voting to advance the bill ^[2].

Under the Agriculture Committee's proposal, the CFTC would oversee most spot cryptocurrency markets, classifying "digital commodities" as blockchain-based assets used for payments, governance, or network fees ^[2]. These assets would not be treated as securities unless sold as investment contracts, providing clearer regulatory guidelines and reducing SEC control over non-security tokens ^[2].

The committee's bill also establishes new CFTC registration categories specifically for cryptocurrency exchanges, brokers, and dealers ^[2].

Banking Committee Takes Different Approach

The Senate Banking Committee has developed an alternative framework that would grant the SEC greater authority through the introduction of "ancillary assets" ^[2]. Under this approach, the SEC would make case-by-case determinations about whether these assets qualify as securities, creating less regulatory certainty and limiting automatic CFTC jurisdiction ^[2]. Unlike the Agriculture Committee's version, the Banking Committee's draft does not create new CFTC roles and instead attempts to fit cryptocurrency into existing securities regulations ^[2].

CLARITY Act Progress Delayed

Work on the broader CLARITY Act has been postponed by several weeks, according to reports citing sources familiar with the matter ^[3]. The delay stems from a thematic reprioritization within the Senate Banking Committee, as multiple senators have shifted their focus toward potential legislation addressing affordable housing ^[3].

The Banking Committee had originally scheduled a markup for January 15, but it was canceled after cryptocurrency exchange Coinbase withdrew its support over concerns about stablecoin yield provisions and privacy issues ^[2][3]. CEO Brian Armstrong cited a prohibition on stablecoin interest as the reason for the company's position change ^[3].

The postponement represents a setback for President Donald Trump, who stated in his speech at the World Economic Forum in Davos that he intended to sign the CLARITY Act "very soon" ^[3]. Due to the Senate's change in priorities, the legislative proposal could now be delayed until March ^[3].

Industry Reactions Mixed

Despite some provisions raising concerns, the legislation has garnered bipartisan support. The House of Representatives passed the CLARITY Act in July 2025 with backing from both parties, and Senate lawmakers from both sides continue negotiations ^[2].

Ripple CEO Brad Garlinghouse expressed support for the cryptocurrency bill, emphasizing that the industry needs regulatory clarity rather than perfect legislation ^[1]. "Let's not let perfect be the enemy of good," Garlinghouse stated, arguing that a practical framework would encourage innovation across the digital asset sector and that waiting for ideal legislation could slow progress when clearer rules are urgently needed ^[1].

SEC Chair Paul Atkins also backed bipartisan cryptocurrency legislation to provide long-term regulatory stability ^[2].

White House crypto advisor Patrick Witt warned that delays could result in stricter regulations later ^[2]. David Sacks, the White House crypto czar, stated in a CNBC interview that once market structure legislation passes, banks will fully enter the cryptocurrency space ^[1]. He predicted that traditional banking and crypto would eventually merge into a unified digital assets industry with consistent rules applying to all companies offering similar products ^[1].

Sacks also addressed the stablecoin yield controversy, noting that while the GENIUS Act passed in August prevents stablecoin issuers from directly offering rewards, third-party crypto service providers can still provide yield to users ^[1]. He emphasized that compromise is essential to getting the CLARITY Act signed into law, pointing out that previous crypto bills failed multiple times before succeeding ^[1].

Key sections on decentralized finance (DeFi), developers, and anti-money laundering remain in draft form, leaving room for modifications ^[2].