#USHouseMarketStructureDraft #USHouseMarketStructureDraft

The U.S. House of Representatives has introduced a comprehensive draft bill, the Financial Innovation and Technology for the 21st Century Act (FIT21), aiming to establish a clear regulatory framework for digital assets. This legislation seeks to delineate which digital assets are classified as securities and which are not, addressing long-standing ambiguities in crypto regulation. It proposes that digital assets functioning like swaps, futures, or derivatives remain under existing regulations, while others may be exempt from securities laws under specific conditions.(Mayer Brown, Axios)

The bill designates the Securities and Exchange Commission (SEC) to oversee digital asset securities and intermediaries, and the Commodity Futures Trading Commission (CFTC) to regulate digital commodities and spot markets. It also introduces provisions for the registration of digital asset brokers, dealers, and trading systems, and outlines mechanisms to determine the legal status of blockchain networks launched before the law's enactment.(Axios)

While proponents argue that FIT21 will provide clarity and foster innovation, critics express concerns over potential regulatory gaps and the adequacy of enforcement mechanisms. The legislation is expected to undergo significant debate and revision before any potential enactment.(ICBA, Axios)