Senate Agriculture Committee Advances CLARITY Act in Party-Line Vote

The CLARITY Act reached a significant milestone after the U.S. Senate Agriculture Committee approved its portion of the broader crypto market structure legislation during a markup session held today. The committee passed the Digital Commodity Intermediaries Act, a key component of the CLARITY Act, by a narrow party-line vote of 12 to 11. All Republican members voted in favor, while Democrats opposed the bill, highlighting ongoing partisan divisions over cryptocurrency regulation in the United States.

This development marks the first formal step in the Senate’s effort to advance comprehensive crypto market structure legislation in 2026. The Senate Agriculture Committee’s portion of the bill primarily focuses on expanding the Commodity Futures Trading Commission’s authority over crypto-asset commodities and intermediaries, reinforcing the CFTC’s role as a primary regulator of parts of the digital asset industry. The markup included debate over several amendments proposed by both parties, though none of the Democratic-backed changes ultimately passed.

Attention now shifts to the Senate Banking Committee, which is responsible for the remaining portion of the CLARITY Act that addresses securities regulation, stablecoins, and consumer protections. However, that committee has not yet scheduled its markup, and lawmakers expect deliberations to take place later in February or March. The looming possibility of a U.S. government shutdown by the end of the week could further slow the legislative process, although negotiations between President Donald Trump and Senate Minority Leader Chuck Schumer may avert a prolonged disruption.

The bill has also gained momentum from the White House, which plans to intervene in disputes between the banking sector and the crypto industry over the stablecoin yield ban provision. A meeting between banking and crypto executives is scheduled for next Monday, potentially paving the way for a compromise ahead of the Banking Committee’s markup.

Despite progress, Democrats continue to raise concerns about the absence of ethics provisions in the CLARITY Act, particularly regarding President Trump’s involvement in crypto ventures. Amendments aimed at restricting federal officials and their families from holding direct crypto interests were rejected, prompting warnings that the bill could face challenges on the Senate floor. With ethics, consumer protection, and regulatory independence still unresolved, the future of the CLARITY Act remains uncertain as it moves through Congress.