U.S. House Unveils New Crypto Market Structure Bill Draft
On May 6, 2025, the U.S. House Financial Services Committee released a discussion draft of a landmark bill aimed at reshaping the regulatory framework for digital assets. Spearheaded by Republican Chairs Patrick McHenry and Glenn Thompson, the proposed legislation seeks to clarify jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Key provisions of the bill include guidelines for determining when a digital asset becomes “sufficiently decentralized” and can shift from SEC oversight to CFTC jurisdiction. It also introduces a provisional registration regime for crypto firms, allowing them to operate while pursuing full compliance, and proposes a joint SEC-CFTC advisory committee focused on digital assets and decentralized finance (DeFi).
Supporters argue the bill provides long-needed clarity and could prevent crypto companies from relocating overseas due to regulatory uncertainty. However, Democratic lawmakers and SEC Chair Gary Gensler criticized the bill, warning that it could undermine investor protections and create regulatory loopholes similar to those exploited during the FTX collapse.
Despite its significance, the bill is unlikely to pass in the current Congress but is expected to shape the foundation for future crypto legislation.
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