This past week, the Senate has been engaged in active negotiations to try and pass a minibus including the six remaining FY2026 appropriations bills for Labor-Health and Human Services (LHHS), Transportation-Housing-Urban Development-Education (THUD), Defense, Financial Services-General Government and National Security-Department of State, and Homeland Security in time to clear the January 30 funding deadline. Due to recent developments in Minneapolis concerning U.S. Immigration and Customs Enforcement (ICE) Agency enforcement, the Homeland Security bill remains a subject of partisan contention, potentially jeopardizing the passage of the current minibus package the includes the five other mentioned spending measures. Senate Democrats have made it clear that they are not willing to vote on the Homeland bill without meaningful reforms related to ICE oversight and accountability. If the Senate is unable to find a bipartisan solution by Friday at midnight, a partial government shutdown is imminent and will last as long as it takes lawmakers to finally reach a compromise or pass a new continuing resolution (CR) to extend the current funding deadline further down the road.

At this point in time, six FY26 appropriations bills have been enacted into law — including those for Agriculture, Legislative Branch, Mil-Con VA, CJS, Interior, and Energy-Water. In the event of a partial government shutdown, services funded through administrative agencies including the USDA and the EPA are expected to continue without interruption, as they remain fully funded through September 30, 2026.

Senate Ag advances crypto market structure legislation out of Committee: On Thursday, January 30, the Senate Committee on Agriculture, Nutrition, and Forestry convened a business meeting to consider the Digital Commodity Intermediaries Act that would provide new authority to the Commodity Futures Trading Commission (CFTC) to regulate digital commodities and modify consumer protections for the emerging market. This legislation is related to and builds on the House-passed CLARITY Act. The Committee stated that this legislation intends to address the following:

• A clear legal definition of digital commodities and the establishment of a spot market digital commodity intermediary regulatory regime with the CFTC;

• Robust consumer protections including customer fund segregation requirements, conflict of interest safeguards, and appropriate customer disclosure requirements;

• A trading registration regime designed to facilitate and onshore liquid and resilient regulated markets while protecting retail participants;

• Requirements for the CFTC and SEC to coordinate and collaborate on necessary inter-agency rulemakings;

• Robust protections for software developers and innovative technology; and
• A new funding stream for the CFTC to stand up a spot market regulatory regime.

The market structure legislation ultimately passed out of Committee along a party line vote. You can find bill text here and the Committee’s section-by-section here.