A recent market structure project from the U.S. House of Representatives, published on May 5, 2025, clarifies that "digital goods" are not considered securities under certain conditions, particularly if transactions on secondary markets do not grant buyers rights to profits or assets of the issuer. This could significantly impact liquidity and regulatory compliance in the crypto industry.
The definition of "digital goods," which encompasses tokens on decentralized blockchains, transfers oversight of them to the CFTC rather than the SEC. This reduces regulatory pressure, as the CFTC has a more favorable approach to cryptocurrencies like Bitcoin or Ethereum. Increased clarity may attract institutional investors, enhancing the liquidity of secondary markets where most altcoins are traded.
Furthermore, the project offers a decentralization test that excludes tokens from being classified as securities if no party controls more than 10% of the supply. This encourages projects towards transparency and decentralization, increasing trust. However, unresolved issues, such as the regulation of stablecoins, may hinder progress. Overall, these changes promise to invigorate the market.
