The U.S. Senate’s effort to set clear rules for the cryptocurrency industry moved forward this week, but not without controversy. On Thursday, the Senate Agriculture Committee advanced its version of a broad digital asset market structure bill, approving it by a narrow 12–11 party-line vote. While the step signals momentum on crypto regulation, it also highlights growing political divides, particularly around President Donald Trump’s personal and family ties to the crypto sector.
The bill would significantly expand the Commodity Futures Trading Commission’s authority over digital assets, a long-standing goal for lawmakers who want clearer oversight of crypto markets. It also includes provisions aimed at protecting parts of decentralized finance, such as noncustodial software developers and infrastructure providers, which supporters argue are essential for innovation.
Despite the close vote, the Agriculture Committee has generally been seen as a more cooperative venue for crypto legislation than the Senate Banking Committee. During Thursday’s hearing, members from both parties expressed interest in finding common ground. Sen. Cory Booker of New Jersey pointed to months of bipartisan work, including a joint discussion draft released last November, as evidence that compromise is possible.
According to Booker, that momentum slowed after lawmakers returned from the holiday recess. He said some Republicans stepped away from the bipartisan process that produced the earlier draft, creating frustration among Democrats who believed an agreement was within reach. Still, Booker struck a hopeful note, urging colleagues to resume talks and suggesting a bipartisan deal could be finalized within weeks.
A central source of tension is President Trump’s expanding involvement in the crypto industry. Recent estimates suggest Trump has earned roughly $1.4 billion from various crypto ventures, including the decentralized finance and stablecoin project World Liberty Financial. The Trump family also reportedly holds a significant stake in the mining firm American Bitcoin. For many Democrats, these ties raise ethical questions as Congress debates how to regulate the sector.
Sen. Michael Bennet of Colorado proposed an amendment addressing potential conflicts of interest involving elected officials and their families. Bennet framed the issue as one of democratic integrity rather than a direct attack on crypto or the president. That amendment, however, was not adopted. Committee Chair John Boozman acknowledged the concern but said broader ethics rules fall outside the scope of the current bill and would require further input.
Other proposed changes, including measures aimed at preventing fraudulent transactions at digital asset kiosks, were also set aside during the markup.
With the Agriculture Committee’s version now approved, attention turns to the Senate Banking Committee, which must advance its own bill. That process has already proven difficult. A planned markup was recently pulled after Coinbase withdrew its support, citing unresolved issues such as tokenized equities, the balance of authority between the Securities and Exchange Commission and the CFTC, and how stablecoin rewards should be treated.
If both committees move forward, their proposals will need to be merged into a single bill before heading to the full Senate. Passage there will require at least 60 votes, meaning Republicans would need unified support along with backing from some Democrats. Given the lack of Democratic votes in the Agriculture Committee, the path ahead remains uncertain.
