The Senate Agriculture Committee voted 12-11 along party lines Thursday to advance crypto market structure legislation, fracturing over President Donald Trump's cryptocurrency ventures that Democrats cite as disqualifying conflicts of interest.
Republicans pushed through the bill expanding Commodity Futures Trading Commission oversight without Democratic support, creating uncertainty about eventual passage in the full Senate where 60 votes will be required.
The partisan divide emerged after Bloomberg estimated Trump added $1.4 billion in crypto wealth over the past year through World Liberty Financial (WLFI) and a 20 percent stake in mining firm American Bitcoin.
What Happened
Senator Cory Booker acknowledged Republicans and Democrats had negotiated productively on bipartisan legislation through November but said colleagues abandoned talks after the holidays without explanation.
An amendment addressing Trump's business entanglements failed Thursday on party-line votes despite Senator Michael Bennet arguing the issue "strikes at the core of our democracy."
Committee Chairman John Boozman acknowledged the concern but said conflicts involving elected officials and their families require broader input beyond the Agriculture Committee's jurisdiction.
The legislation would grant CFTC broader crypto oversight authority and protect decentralized finance developers from treatment as regulated financial intermediaries.
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Next Steps Uncertain
The Senate Banking Committee must now advance its own version before the bills can be combined for a full Senate vote requiring bipartisan support.
That process faces complications after Coinbase withdrew backing from the Banking Committee's draft in January over concerns about tokenized equities treatment, decentralized finance restrictions, regulatory jurisdiction splits, and stablecoin reward limitations.
The Banking Committee has not scheduled its next markup hearing following the Coinbase withdrawal and subsequent postponement.
Whether the Agriculture Committee's Republican-driven bill can gain necessary Democratic support remains unclear as Trump's crypto ventures continue drawing scrutiny amid questions about conflicts between presidential authority and family business interests regulated by federal agencies.
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