Senate GOP Pushes Crypto Market Bill Ahead of Markup Without Democratic Support

Republicans on the US Senate Agriculture Committee moved forward Wednesday with a draft crypto market structure bill, despite failing to reach agreement with Democratic members. Committee chair John Boozman said talks broke down over what he described as core policy disputes.

The bill is scheduled for a committee markup on Tuesday, Jan. 27. Democrats on the panel have not endorsed the text.

Boozman said the draft followed months of talks and feedback from industry groups, but acknowledged the lack of bipartisan backing. He said the committee would proceed regardless.

Bill Sets SEC and CFTC Roles

The legislation aims to define how crypto markets fall under US financial rules. It focuses on splitting oversight between the SEC and the CFTC.

Under the draft, digital commodities would fall mainly under CFTC supervision, while securities tied to crypto would remain under the SEC. The bill is designed to set clearer rules for trading platforms, brokers, and custodians operating in US markets.

Republicans say unclear rules have pushed firms offshore and limited growth at home. Democrats have raised concerns about investor protection and enforcement gaps, according to people familiar with the talks.

DeFi and Developer Liability Limits

Crypto lawyer James Murphy, known as MetaLawMan, said the draft includes key protections for decentralized finance activity. He said the bill creates a route for DeFi projects to avoid direct CFTC control if they do not take custody or control trades.

The text shields DeFi software developers and some service providers from liability under CFTC rules. Murphy said this protection is aimed at code writers and builders rather than companies running trading desks.

Stablecoin yield products are not covered. Murphy said those issues fall under the Senate Banking Committee, not the Agriculture panel.

Focus on Intermediaries, Not Users

Bill Hughes, a lawyer at Consensys, said the bill draws a clear line between intermediaries and users.

He said self custody wallets are not regulated under the draft. Non custodial DeFi interfaces are also excluded. Any platform that holds user funds or controls trade execution would face oversight.

Hughes said the bill targets firms acting as middlemen, not protocols or individuals using crypto tools.

The draft was released as reports surfaced of delays to the Senate Banking Committee’s own crypto bill, which may not appear until February or March.

If approved next week, the Agriculture Committee bill would still need broader Senate backing to advance. With Democrats opposed for now, passage remains uncertain.