Months after the House passed the CLARITY Act, the Senate has begun crafting its own vision for crypto regulation—an effort that continues despite the ongoing government shutdown.
Behind closed doors, the Senate Agriculture Committee has emerged as the quiet epicenter of the process. Chairman John Boozman is reportedly leading bipartisan discussions aimed at shaping a unified proposal that could align with the House’s version. Committee officials describe the talks as constructive, though the path toward compromise remains uncertain.
If both chambers can agree on a final draft, the measure would land on President Donald Trump’s desk – potentially marking a turning point in the United States’ long-delayed effort to give the crypto sector legal clarity.
The challenge, however, lies in the details. Several competing visions of digital asset oversight are circulating through Congress. A coalition of Democratic lawmakers – including Senators Mark Warner, Kirsten Gillibrand, Cory Booker, Andy Kim, and Ruben Gallego – has promoted a framework designed to bridge existing regulatory gaps. Meanwhile, the Republican-supported Responsible Financial Innovation Act (RFIA) envisions a hybrid oversight model in which the SEC and CFTC share jurisdiction, introducing a new class of “ancillary assets” distinct from traditional securities.
Beneath the political differences lies an institutional one. The Senate’s Banking Committee formally handles financial legislation, but crypto oversight straddles two worlds – securities and commodities – placing the Agriculture Committee squarely in the discussion because of its connection to the CFTC. As a result, both committees must synchronize their efforts, an unusually complex arrangement in an already compressed legislative calendar.
“The biggest hurdle is time,” said Coinbase’s U.S. policy lead, Kara Calvert, noting that the shutdown has slowed critical work across agencies. The CFTC, which plays a central role in the proposed framework, is running on limited staff under an interim chair after President Trump withdrew Brian Quintenz’s nomination for the permanent position.
Recent remarks from SEC Chair Paul Atkins and CFTC interim leader Caroline Pham have also added intrigue. In a joint statement, they proposed giving the SEC broader authority over spot crypto markets – a stance that could shift once a new CFTC head is appointed.
If the federal shutdown drags into next week, senators will have only about 30 legislative days left to pass the bill before year‑end. Analysts say that’s a tight window for a measure of this scale. “Momentum is fragile,” warned Stacey Rolland, CEO of Zero One Strategies. “If the process spills into 2026, it risks losing the bipartisan energy that’s been building.”
Still, optimism persists. Ji Kim, head of the Crypto Council for Innovation, said the current effort represents a defining moment for U.S. leadership in digital assets. “Once the government reopens, the pace will pick up quickly,” he said. “There’s real appetite to establish lasting rules for this industry.”
The next draft from the Senate Agriculture Committee will be crucial in determining how much progress lawmakers can make before time – and political bandwidth – run out. Whether the final outcome is a grand compromise or another delay, it’s clear that Washington’s debate over crypto regulation has reached its most pivotal stage yet.
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