On May 6, 2025, the US House Financial Services Committee announced a draft bill for a new market structure that could remove the SEC's oversight of most major crypto coins, transferring it to the CFTC. However, today's discussion meeting is expected to be tense as Democrats plan to walk out of the session. Could this be a turning point for the crypto industry? Let's explore in detail.
New Bill: Removing SEC's Oversight
The draft bill just released on Monday proposes amendments to longstanding securities laws such as the Securities Act of 1933 and 1934, aiming to exclude 'digital commodities' from the definition of 'securities,' thereby taking these assets out of the SEC's regulatory purview. Instead, trading in the secondary market for digital commodities will be transferred to the Commodity Futures Trading Commission (#CFTC ), provided that the assets certified by the SEC originate from a 'mature blockchain system.'
'Digital Commodities' and 'Mature Blockchain Systems': What Are They?
The bill defines 'digital commodities' as assets created by a blockchain system, having value from that system, providing voting rights in decentralized governance, or being used to validate blockchain transactions. Major coins like Ethereum, Solana, $BNB , and Cardano appear to meet this criterion.
A 'mature blockchain system' must: allow on-chain transactions, service access, node operation, or transaction validation; be open source and public; be automated; not be able to be shut down or altered by a single individual or entity (except for security or maintenance reasons); and no one can own more than 20% of the token supply. However, transactions related to the rights of profit or assets of the issuer (such as organizational issuances) will not be exempt.
The XRP Case: A Drawback of Ownership
A major question arises with $XRP (Ripple controls over 20% of the supply). According to the bill, this could make secondary transactions of XRP not exempt from securities law, as it exceeds the 'beneficial ownership' threshold of 20%. However, most of Ripple's XRP is held in escrow, and this may not be considered 'beneficial ownership' under the bill's definition. Additionally, tokens issued before the law takes effect (like XRP) may still be exempted by the SEC on a case-by-case basis if they meet 'part' of the requirements. Decrypt has contacted Ripple and the House Financial Services Committee but has not yet received a response.
Political Reaction: Democrats Walk Out
The bill was presented before the House Financial Services Committee's crypto-focused meeting on Tuesday, but tensions have escalated. Democrats, frustrated by Republicans' refusal to include a provision banning the President from participating in crypto projects while in office, plan to walk out of the meeting in protest, aiming to prevent the session from taking place, according to two sources from Decrypt and Punchbowl News.
Impact on the Crypto Market
This bill brings many signals:
Altcoin growth: If passed, coins like Ethereum, Solana, and BNB will benefit significantly, similar to Bitcoin ETFs (which attracted $1.8 billion last week).
Management shift: Oversight to the CFTC could create a clearer legal framework, boosting institutional flows (crypto funds reached $3.4 billion last week).
Political risks: Democrats walking out of the meeting could delay progress, affecting short-term market sentiment, especially as Bitcoin ($94,800) is fluctuating.
Conclusion: Will Crypto Be 'Liberated' From the SEC?
The new bill in the US House may remove the oversight authority of #SEC over leading crypto coins, transferring it to the CFTC, opening up significant opportunities for Ethereum, Solana, BNB, and Cardano. However, the case of XRP remains a question mark, and political reactions from Democrats could slow the process. Investors should closely monitor to seize opportunities in this promising crypto market.
Risk warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.
