#USHouseMarketStructureDraft New U.S. House Draft Clarifies Digital Commodity Transactions

A recent draft discussion on market structure from the U.S. House of Representatives aims to provide much-needed clarity on how digital commodities are classified under U.S. law. Here's a breakdown of the key points:

Key Clarification on Digital Commodities:

The draft, as reported by Forbes journalist Eleanor Terrett, specifies on page 49 that transactions involving digital commodities will not be classified as securities, provided they do not involve granting the purchaser ownership rights in the issuer's business, profits, or assets.

What Does This Mean for Digital Commodity Transactions?

Essentially, buying and selling digital commodities on secondary markets—not directly from the issuer—will not trigger U.S. securities laws.

The important distinction here is that these transactions will remain outside the scope of securities regulations unless the sale confers ownership rights or claims to the profits or assets of the company issuing the commodity.

Why This Matters:

This clarification could help create a more defined and secure legal framework for digital commodities in the U.S. market, ensuring that transactions remain clearly separated from securities regulations unless there’s a direct tie to ownership in a company or its financials.

This move represents a significant step in understanding how digital assets will be treated within the larger regulatory framework, especially as the cryptocurrency and blockchain markets continue to grow.