A new draft of U.S. crypto market structure legislation is expected to move forward in the Senate with language broadly favorable to the digital asset industry, but uncertainty remains over whether it can secure meaningful Democratic support. Industry insiders say the upcoming version from the Senate Agriculture Committee is likely to include protections that shield crypto developers from being treated as regulated financial institutions, a long sought goal of the sector. However, if the bill advances as a largely Republican-backed effort, it could struggle to reach the vote threshold required in the full Senate. Negotiations are still ongoing ahead of a planned committee markup, and while the text is expected imminently, lobbyists are bracing for a partisan divide that could slow or complicate the broader push for comprehensive crypto regulation in the United States.
The Agriculture Committee’s draft follows a stalled attempt by the Senate Banking Committee, where talks broke down amid disagreements over consumer protection, regulatory oversight, and stablecoin-related provisions. Because digital assets span both securities and commodities, both committees must ultimately approve versions of the bill before it can advance. The agriculture-led effort focuses more narrowly on market structure for commodities, avoiding some of the more contentious issues that derailed earlier negotiations. Supporters argue this gives it a clearer path forward, especially given the committee’s history of bipartisan cooperation. Still, Democrats have raised unresolved concerns around ethics rules, consumer safeguards, and the need for fully staffed regulatory agencies, signaling that agreement is far from guaranteed even at this stage.
Political pressure around the bill is intensifying as the White House has indicated a desire to see crypto market legislation enacted, framing regulatory clarity as inevitable for a sector of this size. Industry advocates say passing a bill without bipartisan backing would weaken its durability and complicate reconciliation between competing committee versions later in the process. Additional hurdles remain, including disputes over developer liability, stablecoin yield rules, illicit finance controls, and protections for decentralized finance. As the Agriculture Committee prepares to release and debate its draft, the coming weeks are likely to determine whether the legislation becomes a foundation for long-term crypto regulation or another step in a prolonged and fragmented legislative process.
