#USHouseMarketStructureDraft

On May 5, 2025, the U.S. House Financial Services and Agriculture Committees unveiled a discussion draft of the Digital Asset Market Structure Act. This 212-page proposal aims to establish a comprehensive regulatory framework for digital assets, delineating clear roles for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Under the draft, digital assets would be classified based on their level of decentralization. Assets deemed sufficiently decentralized would fall under the CFTC’s jurisdiction as commodities, while those that are more centralized would remain under the SEC’s oversight. The bill introduces a “decentralization test,” considering factors like token distribution and network control to determine regulatory authority.

Additionally, the proposal seeks to enhance consumer protections, promote innovation, and provide regulatory clarity for digital asset developers and users. It also outlines provisions for the registration of digital commodity exchanges and introduces exemptions for certain decentralized finance (DeFi) protocols.

The draft is currently open for public comment, with a joint hearing by the respective subcommittees scheduled to discuss the proposal further.