Senate Crypto Bill is in the Critical Stage—The Example of the Connecting Approach May Change in the Industry

What matters next week is not just about a law—it’s about how the Senate will address the crypto industry. The Digital Asset Market Clarity Act awaits recognition, and surprisingly, how far partisan support will go in avoiding the long-awaited regulatory patch remains to be seen.

Through transparency and strategic deliberation, the Senate Agriculture Committee is positioned to bring this legislation to a deeper understanding of the industry’s needs. Their collaboration will serve as a guide for how other governing bodies should respond to digital assets.

The Regulatory Patchwork—How the Two Committees Differ in Their Mandates

Crypto regulation in the United States is facing an unusual situation: two separate Senate committees need to give their blessing to a single industry. The Senate Banking Committee focuses on securities and derivatives, while the Senate Agriculture Committee leads on commodity oversight. Since crypto spans both worlds, they must work together to create a comprehensive regulatory framework.

This is why each committee is developing its own version of the law. The banking version is stricter on security protocols, while the agriculture framework focuses on commodity market structures, stablecoin regulations, and DeFi protections. This difference is not just technical—it reflects the real divide in the regulatory approach between the two regimes.

The Banking Bridge Example—Why Past Attempts Failed

To understand why a cleaner strategy is needed this month, let’s look at what happened with the banking committee last week. The initial draft lost momentum due to combined pressure from various stakeholders. Democrats pushed for higher consumer protections, insurance companies lobbied for exemptions, and even the White House sent conflicting signals. Ultimately, even Coinbase—one of the most influential voices in the industry—withdraw support.

This example offers a valuable lesson: a regulatory approach must be about the right words and the right coalition. If the banking effort failed to garner bipartisan support, it set a concerning precedent for the agriculture committee.

The Big Challenge—DeFi, Stablecoins, and the Engagement Space

The biggest issues ahead are not simple. The agriculture draft brings with it the regulatory patchwork for stablecoins, DeFi liability protections, and anti-money laundering measures. Each has its own interest groups eager to provide input.

For example, the stablecoin issue—how crypto-backed digital currencies should be regulated—has ongoing debates about consumer protection and financial stability. The DeFi ecosystem also needs clarity, but protections for developers raise new questions: should they be treated like regulated financial firms? The regulatory patchwork must balance innovation with consumer protection.

Additionally, an anti-corruption provision under consideration may require separate ethics committee review, complicating negotiations further.

Why Partisanship Matters—And Why Support from Only Republicans Could Be a Problem

Industry insiders are concerned for a simple reason: if the agriculture committee passes a law without Democratic support, the entire Senate becomes a very difficult venue. Under Senate rules, at least seven Democrats are needed to advance any legislation in the final vote.

This means relying solely on Republican support could jeopardize the entire effort. That’s why Chairman John Boozman—a Republican—and Democratic negotiator Cory Booker are reaching across the aisle. Their collaboration demonstrates that a regulatory patchwork is possible anywhere.

The Timeline and Top-Down Pressure

The new draft is expected to be released this week, with a markup hearing scheduled for next week on January 27. This timeline offers an opportunity for meaningful discussion before the final vote.

But external pressure is also present. President Donald Trump signaled to Switzerland his desire to see this law become law as soon as possible. His crypto advisor, Patrick Witt, posted on social media that it’s “a matter of when, not if.” Rapid presidential support could accelerate proceedings in the Senate, but pressure might also lower the quality of the outcome.

What This Means for the Crypto Market

The regulatory patchwork—if it reaches the finish line—will be a major shift for the industry. For a long time, crypto has operated under regulatory uncertainty. This law will provide clarity on how developers, exchanges, and users should move forward.

The SEC’s new guidance on tokenized stocks indicates that regulatory intent will become more structured and clear. The market expects a similar approach for the overall crypto framework—one that balances innovation and protection.

But the regulatory patchwork is not guaranteed. If the agriculture committee fails to secure enough Democratic buy-in, or if the banking version becomes more controversial, the entire effort could revert to zero. It’s a bipartisan effort that requires consensus, and the banking committee example shows how far from certainty this process remains.