On May 5, 2025, Republican leaders in the House of Representatives presented a new bill concerning the structure of the digital asset market, marking a significant step toward clear regulation of cryptocurrencies in the United States.
š What does the bill propose?
Initiated by the chairs of the Subcommittees on Financial Services and Agriculture, the bill proposes:
ā¢ Clarification of the status of digital assets: Establishes criteria to determine whether a digital asset is considered a security or a commodity, based on the degree of decentralization of the associated blockchain network.
ā¢ Transfer of regulatory authority: Proposes that the majority of digital assets be regulated by the Commodity Futures Trading Commission (CFTC), thus reducing the oversight of the Securities and Exchange Commission (SEC) over them.
ā¢ Self-certification mechanism: Allows blockchain projects to self-certify as decentralized, thereby providing them with a clear legal framework for operation.
ā¢ Transparency in token holdings: Requires project team members to disclose token holdings that exceed 1% of the total supply, to prevent excessive concentration and potential market manipulation.
āļø Reactions and implications
The bill has been well-received by the crypto community, being seen as an important step toward clear and innovation-friendly regulation. However, there are political tensions, especially from Democrats, who express concern regarding possible conflicts of interest, given President Donald Trump's involvement in cryptocurrency-related businesses.
š Next steps
On May 6, the relevant subcommittees in the House of Representatives will hold a joint hearing titled "American Innovation and the Future of Digital Assets: A Plan for the 21st Century," where this bill and its impact on the crypto market will be discussed.