#USHouseMarketStructureDraft U.S. House Unveils Comprehensive Crypto Market Structure Draft Bill

On May 5, 2025, the U.S. House Financial Services and Agriculture Committees released a discussion draft of a bill aimed at establishing a comprehensive regulatory framework for digital assets. This initiative seeks to clarify the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing various aspects of the crypto market.  

Key Provisions of the Draft Bill:

• Regulatory Jurisdiction: The bill delineates responsibilities between the SEC and CFTC. Digital assets deemed sufficiently decentralized would fall under the CFTC’s purview as commodities, while those that are centralized would be regulated by the SEC as securities.  

• Decentralization Criteria: A blockchain network would be considered “mature” and decentralized if no single entity controls more than 20% of the token supply and the network operates autonomously. 

• Investor Access: The draft proposes removing wealth and income restrictions for retail investors, allowing broader participation in digital asset markets. 

• Disclosure Requirements: Projects would be mandated to disclose token holdings exceeding 1% to promote transparency and reduce the influence of large stakeholders. 

Political Context and Debates:

While the draft bill has garnered support from several Republican lawmakers, it faces opposition from some Democrats. Representative Maxine Waters, the ranking member of the House Financial Services Committee, has expressed concerns over potential conflicts of interest, particularly relating to President Trump’s involvement in the crypto industry. She has indicated plans to block a joint hearing on the bill unless provisions are included to prevent government officials from profiting from crypto investments.