The US Senate Agriculture Committee voted 12-11 on Thursday (January 29) to advance its version of the CLARITY Act, pushing a major crypto market structure bill one step further through Congress.
Summary
- The Senate Agriculture Committee advanced the CLARITY Act along partisan lines.
- Democrats raised ethics and DeFi concerns during the markup.
- The bill now awaits action from the Senate Banking Committee.
According to US media reports, the Digital Commodity Intermediaries Act allowed the committee to fall along party lines, with all Republicans voting for and all Democrats against.
The bill aims to give the Commodity Futures Trading Commission clear authority over digital products, marking the first time a crypto market structure proposal has moved beyond a Senate committee.
Committee vote highlights divisions on ethics and DeFi
As Fortune first reported, the vote revealed sharp divisions over ethical provisions and treatment of decentralized finance. Democratic senators criticized Republicans for introducing the bill without bipartisan support, arguing that it lacks safeguards to avoid conflicts of interest of public officials holding crypto holdings.
Several lawmakers have directly pointed to President Donald Trump’s growing involvement in blockchain-related projects. In comments shared during the hearing, Sen. Cory Booker of New Jersey said the administration’s financial ties to industry had complicated negotiations and weakened trust around the bill’s framework.
An amendment that would have added an ethics provision failed along partisan lines. The advocacy group Public Citizen later described the legislation as the “gryfto” bill, a reference to concerns that politicians could personally benefit the industry under the proposed rules.
Despite the opposition, the adoption of the bill by the agriculture committee is considered an important step. This reflects the crypto industry’s growing influence in Washington, where it is preparing to deploy nearly $200 million in campaign spending ahead of the 2026 midterm elections.
What happens next for the CLARITY Act
The Agriculture Committee’s action does not allow the bill to go to a full vote in the Senate. The Senate Banking Committee still must approve its own version before lawmakers can reconcile the two measures. This process faces obstacles, including unresolved disputes over stable coin yields and the role of banks in crypto markets.
The CLARITY Act has already cleared the House, where it passed in July, but its path through the Senate has been less smooth. Earlier this month, a clash between the banking lobby and crypto companies over yielding stablecoins led to reports that Coinbase CEO Brian Armstrong would withdraw his support, prompting the banking committee to delay its markup.
Industry funding continues to shape the debate. Fairshake, the leading crypto-aligned super PAC network, revealed this week that it held $193 million in cash, including new contributions from Coinbase, Ripple and Andreessen Horowitz.
Republican leaders struck an optimistic tone after the vote. House Financial Services Committee Chairman French Hill said the committee’s action brings Congress closer to establishing a bipartisan market structure framework, while Agriculture Committee Chairman Glenn “GT” Thompson called the markup a key step toward final legislation.
Even so, without Banking Committee approval and a cross-party agreement, the bill’s future remains uncertain as lawmakers try to close policy and regulatory loopholes.
