Senate panel passes crypto CFTC regulation bill

The Digital Commodity Intermediaries Act advanced on a party line-vote with 12 Republicans voting “yes” and 11 Democrats voting “no.” The vote is notable because it marks the fist time a crypto market structure bill has advanced beyond a Senate committee. The Senate Banking Committee would also need to approve its version of a crypto market structure bill before the two measures could combine and advance to the full Senate.

Senate Agriculture Committee Chairman John Boozman, R-Ark., proceeded with the bill after losing bipartisan support for an earlier version. Boozman had worked with Sen. Cory Booker, D-N.J., on a draft bill last year, but Booker walked away from the version the committee voted on Thursday. However, Sen. Kirsten Gillibrand, D-N.Y., said in an interview with CNBC last week that she was “very optimistic” the Agriculture Committee would advance its measure.

Boozman in a statement Thursday called the vote “a critical step toward creating clear rules for digital asset markets.” He said “there’s still more work ahead,” adding that he is “hopeful” the development “will build momentum in the Senate to advance this legislation.” 

Boozman released the present bill version Jan. 21 to give the Commodity Futures Trading Commission new authority to regulate digital assets. The legislation builds on the bipartisan CLARITY Act, the crypto market structure bill that the House of Representatives passed last summer, and incorporates provisions negotiated with Senate Democrats as well as input received during bipartisan meetings with stakeholders, according to Boozman.

Democrats offered amendments that would have included banning public officials –including the president – from engaging in the crypto industry and addressing involvement in digital commodities from foreign adversaries. None were approved.

The Senate Banking Committee’s consideration of its version of the bill was postponed from Jan. 15 at the last minute after opposition from the crypto industry, including Coinbase. A new Banking date has yet been set. Boozman said Thursday that he looks forward to working with the Banking Committee on issues discussed in his committee. Those points include scams linked to crypto ATMs.

This is a developing story. Stay with CNBC.com for updates.