The US encryption bill narrowly "clears customs" in the Agriculture Committee, but lack of support from both parties may make it difficult to pass in the Senate.

The United States Senate Agriculture Committee responsible for overseeing commodity trading on Thursday pushed forward a bill to establish a federal regulatory framework for cryptocurrencies in a "party-line vote" manner, indicating that the legislation may lack enough support to pass in the full Senate. If passed, the bill would grant the Commodity Futures Trading Commission the authority to regulate the spot cryptocurrency market and set rules for digital commodity exchanges, brokers, and traders. Meanwhile, a companion bill in the Senate Banking Committee has attracted more attention due to the controversial issue of whether cryptocurrency companies should be allowed to pay interest on stablecoins (cryptocurrency tokens pegged to the US dollar), sparking intense lobbying battles between traditional banking institutions and cryptocurrency companies. The cryptocurrency industry emphasizes that the US Cryptocurrency Market Structure Act holds strategic significance for the future development of the industry - providing a crucial legal framework for business operations and seen as a cornerstone in building a compliant digital asset ecosystem. To ensure the smooth passage of this landmark legislation, the industry has invested significant funds in supporting candidates who are pro-cryptocurrency during the 2024 election cycle, aiming to achieve legislative breakthroughs through political strategies. The cryptocurrency industry states that the US Cryptocurrency Market Structure Act is crucial for the future of the industry, providing legal certainty for business operations. To ensure the smooth passage of this landmark legislation, the industry has invested significant funds in supporting candidates who are pro-cryptocurrency during the 2024 election cycle. The House of Representatives passed a version of the bill last July. Requires Democratic support to pass In order for the bill to pass and ultimately be approved by President Donald Trump, it needs the support of at least seven Democrats in the full Senate. However, some Democrats are concerned that the measure does not include provisions to prevent political officials from profiting from cryptocurrency speculation. On Thursday, no Democratic members of the Senate Agriculture Committee voted to advance the bill. Senator Cory Booker, the ranking Democratic member of the Senate Agriculture Committee, stated that he would like to see more provisions related to decentralized finance included, and his discussions with other committee members on the issue were not reflected in the bill. "This bill is heading toward the red zone, and what's disappointing to me is I see a bipartisan glide path that can get this airplane to land & drive straight to the end zone," Booker metaphorically said in football and aviation terms before the committee vote. The White House is set to meet with banking and cryptocurrency industry executives next Monday to discuss the path forward on cryptocurrency legislation in the Senate Banking Committee, which has not yet voted on advancing the bill.