The US House of Representatives has released a draft bill aimed at establishing a regulatory framework for digital assets. This move is seen as a significant step towards providing clarity and structure to the cryptocurrency market.
Key Provisions of the Draft Bill
- *SEC and CFTC Roles*: The Securities and Exchange Commission (SEC) will oversee digital assets considered investment contracts, while the Commodity Futures Trading Commission (CFTC) will regulate digital commodities and their spot markets.
- *Decentralization Test*: A project is considered decentralized if no single party has unilateral control, and if any party holds more than 10% of the token supply, they must disclose this information while the network remains centralized.
- *Investor Access*: The draft bill removes wealth and income restrictions for retail investors, allowing broader access to digital asset markets.
- *Stablecoin Definitions*: Stablecoins are defined under the draft bill without being categorized as securities, but a separate stablecoin bill has encountered resistance in the Senate.
Implications of the Draft Bill
- *Regulatory Clarity*: The bill aims to provide much-needed regulatory clarity for the digital asset ecosystem, protecting consumers and safeguarding the long-term integrity of digital asset markets.
- *Industry Reaction*: Industry voices have welcomed the draft bill, but some have called for further changes, such as eliminating capital gains tax on cryptocurrency transactions.
Next Steps
- *Public Feedback*: The House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence & House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development will hold a joint hearing to discuss the contents of the draft bill.
- *Refining the Bill*: The draft bill is open for public feedback, and lawmakers will refine the bill based on the input received ¹ ².