The Senate Agriculture Committee is stepping up its involvement in the ongoing congressional debate over crypto market structure legislation. On Tuesday, Senator Amy Klobuchar, the committee’s top Democrat, vocalized her demand for substantial changes before she can back the legislative effort aimed at regulating digital assets. As the House approaches its own decision on market structure through the Digital Asset Markets Clarity Act, Klobuchar’s committee must also agree on its legislative path. However, the changes she and other Democrats are contemplating might extend the legislative process beyond the looming September 30 deadline set by Banking Committee Chairman Tim Scott.
Klobuchar’s Call for Change
Senator Klobuchar made it clear: “We’re not going to be rolled here.” Her insistence on “serious changes” is a rallying cry for a regulatory overhaul that ensures consumer protection and closes any gaping loopholes. In her view, the proposed legislation falls short in securing adequate funding for regulators who will be responsible for overseeing the burgeoning crypto markets. Her concerns highlight potential weaknesses in the bill that could allow existing securities regulations to be circumvented—gaps so large, she quipped, that you could “drive a truck through” them.
On the flip side, Republican Chairman John Boozman acknowledged the need for collaboration with the Banking Committee and other regulators. Though his committee trails in drafting legislation, Boozman emphasized the urgency of creating a robust regulatory framework for trading digital commodities, echoing the need to “get this right.” This sentiment is echoed by industry leaders, as highlighted in Ripple CEO Heads to Capitol Hill as Senate Debates the Future of Crypto, where the importance of clear regulatory guidelines is underscored.
The Balancing Act of Bipartisan Support
Despite not holding the majority, Democratic votes are pivotal for any legislation to clear the Senate’s 60-vote threshold. Senator Elizabeth Warren, another key Democrat and a known crypto skeptic, shares similar policy concerns but is unlikely to engage in the negotiation process. Unlike Warren’s more adversarial stance, Klobuchar’s committee is historically more amenable to collaboration.
Even so, Klobuchar’s past voting record, including her opposition to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, suggests a cautious approach to crypto legislation. This has earned her an “F” rating from the crypto advocacy group Stand With Crypto, which underscores the industry’s concern over her stance.
Industry Implications and Legislative Gridlock
The crypto industry’s reaction is mixed as the legislative tug-of-war unfolds. Some stakeholders are hopeful that Senate deliberations will lead to a more comprehensive overhaul of the House’s proposed bill. Yet, there’s palpable anxiety about the prolonged legislative gridlock, especially with the September 30 deadline looming ominously. For more on the House’s perspective, see our coverage of House Gears Up for Crypto Market Structure Vote on Wednesday, Stablecoins Thursday, which outlines the upcoming legislative actions.
As lawmakers grapple with these complex issues, the broader crypto market remains in a state of limbo. Without a clear regulatory framework, uncertainty continues to cloud investment decisions and market strategies. Analysts suggest that this legislative impasse could either be a moment of recalibration for the industry or a missed opportunity for establishing much-needed clarity.
Looking Ahead
The path forward is fraught with challenges. Will the Senate Agriculture Committee reach a consensus that satisfies both sides of the aisle? And, perhaps more importantly, will the resulting legislation provide the clarity and protection that both the industry and its consumers desperately seek?
As the debate intensifies, market watchers are keenly observing how these legislative maneuvers will ultimately shape the landscape of digital asset regulation in the United States. With September fast approaching, the stakes couldn’t be higher, and the clock is ticking.
Source
This article is based on: Senate Agriculture’s Top Dem: Crypto Market Structure Effort Needs ‘Serious Changes’
Further Reading
Deepen your understanding with these related articles:
- Ripple CEO, ex-US regulators to address market structure at Senate hearing
- US Senate Narrowly Votes to Appoint a Pro-Crypto OCC Chair
- US SEC ‘Crypto Mom’ clarifies: ‘Tokenized securities are still securities’
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
