#USHouseMarketStructureDraft The US House of Representatives has made significant progress in establishing a regulatory framework for digital assets. The Financial Innovation and Technology for the 21st Century (FIT 21) Act aims to provide clarity on the regulatory process between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

*Key Provisions:*

- *Digital Asset Classification*: FIT 21 categorizes digital assets into three types: digital commodities, restricted digital assets and permitted payment stablecoins. Digital commodities would fall under CFTC jurisdiction, while restricted digital assets would be regulated by the SEC.

- *Decentralization Test*: The bill introduces a decentralization test to determine whether a digital asset is a security or commodity. A blockchain system is considered decentralized if no person has unilateral authority to control its functions or restrict access.

- *Regulatory Framework*: The bill tailors existing market regulation to digital assets, providing disclosure requirements and anti-fraud protections. It also establishes new registration categories for digital asset intermediaries.

- *Consumer Protections*: FIT 21 includes provisions for consumer protection, such as disclosure requirements, custody rules and anti-money laundering (AML) requirements ¹ ².

The FIT 21 Act has passed out of the House Financial Services and Agriculture Committees with bipartisan support and is expected to receive a vote on the House floor. If passed, it would mark a significant milestone in establishing a comprehensive US regulatory framework for digital asset markets ¹.