My opinion regarding the latest draft discussion of the US House of Representatives market structure that clarifies that "digital commodities" are not considered securities under certain conditions is positive and potentially significant for the digital asset market.

Increased Liquidity and Compliance:

This regulatory clarification has great potential to enhance liquidity in the secondary market. By eliminating uncertainty regarding the securities status of certain digital commodities, market participants will feel more secure and motivated to engage in trading. This could attract more institutional and retail investors, which in turn would deepen the market and reduce slippage.

In terms of compliance, clear rules would make it easier for exchanges and custodians to operate within the applicable legal framework. They would no longer need to speculate or take risks on varying interpretations regarding securities regulations. This will create a more orderly environment and reduce the potential for unintentional violations.

Potential to Avoid Regulatory Disputes:

If these rules are enforced, it is likely that more tokens can avoid regulatory disputes related to securities. Many digital asset projects face legal challenges due to the ambiguity of whether their tokens meet the definition of securities based on the Howey Test and other legal precedents. With a more specific definition for "digital commodities," projects that meet those criteria will have a stronger legal foundation and the risk of lawsuits from regulators such as the SEC could be significantly reduced.