House Agriculture Committee advances HR 3633, the Digital Asset Market Clarity Act, after contested amendments

The House Committee on Agriculture voted to advance H.R. 3633, the Digital Asset Market Clarity Act, to the House floor after a full-day markup that produced heated debate over regulator funding, jurisdictional boundaries between the Commodity Futures Trading Commission and the Securities and Exchange Commission, and potential conflicts of interest tied to presidential-affiliated cryptocurrencies.

The committee approved the bill as amended in committee by a recorded vote of 29-24, and later voted 47-6 to report the measure favorably to the full House.

The Clarity Act would create a statutory framework to classify "digital commodities" and to assign primary spot-market regulatory authority to the CFTC for certain tokens. Supporters said the bill replaces regulatory uncertainty with a consistent national regime that protects consumers while encouraging innovation; critics said the measure shifts oversight away from the SEC, leaves enforcement agencies under-resourced, and could create loopholes firms might exploit.

Representative David Scott, a Democrat of Georgia, warned opposition members that the bill "would open loopholes for bad actors to exploit," arguing that the split in authority could allow firms to "pick a favored regulator as if they're buying the most lenient umpire in a baseball game." Scott also pressed the committee on the lack of guaranteed appropriations for the CFTC even as the bill expands its responsibilities.

Representative McLean Delaney, sponsor of several successful amendments to the substitute text, said the committee needed to ensure the CFTC is funded to carry out any new responsibilities. In explanation of one amendment she sponsored, Delaney said the change would allow the CFTC to collect annual registration fees for four years so the agency could "hire skilled staff and conduct thorough market oversight, enforce AML laws, and promote financial stability." That amendment (amendment number 6) was agreed to in committee.

Lawmakers repeatedly raised resource concerns. Ranking Member Craig noted that testimony before the committee said the CFTC would need roughly $120,000,000 over three years to implement a larger role; members also flagged a separate appropriations decision that proposed cutting the CFTC budget by roughly $30,000,000. Members on both sides pressed for a durable funding path before the bill moves to the House floor.

Jurisdiction between the CFTC and SEC was a central point of debate. Supporters said the bill's "maturity" or "spot-market" tests resolve prior uncertainty about which agency should regulate tokens that function like commodities but may have been offered in securities-style fundraising. Opponents argued the new statutory exemptions could allow regulatory arbitrage and urged that the agencies finalize coordinated rules through notice-and-comment before exempting registrants in statute.

The committee also considered multiple amendments on conflicts of interest and presidential-affiliated tokens. Representative David Scott offered an amendment that would have prohibited the president, vice president and their families from issuing or benefiting from cryptocurrencies tied to their office; that amendment failed on a recorded vote. Representative Vindman offered an amendment that would bar companies seeking certification from listing or trading meme assets tied to federal officials; that amendment was also defeated in committee.

Several amendments were defeated by recorded votes (commonly 24-29): Representative David Scott's reauthorization/funding amendment proposals and Representative Vindman's public-integrity-focused amendment. Other amendments either were withdrawn or failed by voice vote. The manager's amendment and the amendment in the nature of a substitute incorporating the committee's agreed changes were adopted and comprise the version the committee reported to the House.

Votes at a glance: - Substitute (as amended, manager's amendment included): Adopted (recorded vote 29 yeas, 24 nays). - Amendment number 6 (McLean Delaney) — allowing the CFTC to collect annual registration/fees for four years: Agreed to (voice vote/agreement reflected in proceedings). - Amendment number 7 (Delaney) — later voted on and not adopted (recorded vote: yeas 24, nays 29). - Amendment number 9 (McDonald Rivett) — funding amendment to establish a nominal exchange fee: Not agreed to (chair announced amendment not agreed to; no recorded tally provided in transcript). - Amendment numbers 1 and 2 (David Scott) — failed (recorded tallies announced as 24 yeas, 29 nays for each vote when taken). - Amendment number 4 (Vindman) — failed (recorded tally 24 yeas, 29 nays announced). - Final motion to report H.R. 3633 to the House (motion offered by Representative Davis): Adopted (recorded vote 47 yeas, 6 nays).

Committee discussion and next steps: Members on both sides said further work is expected before floor consideration, particularly on CFTC funding, interagency coordination with the SEC, and conflict-of-interest safeguards for high-profile public figures. Several members urged the Appropriations Committee to provide resources required for the CFTC to fulfill any expanded mandate. The committee gave staff customary direction to make technical and conforming edits before filing the committee report.

The markup record shows substantive bipartisan agreement on the need for clearer rules for digital-asset markets, accompanied by persistent disagreement over funding mechanisms and the appropriate balance between fostering innovation and safeguarding retail investors. The bill as amended by the Agriculture Committee will next proceed to the House floor for further consideration.