#USHouseMarketStructureDraft On May 5, 2025, U.S. House Republicans unveiled a comprehensive draft bill aimed at establishing a regulatory framework for digital assets. Spearheaded by Representatives French Hill (AR), Glenn Thompson (PA), Bryan Steil (WI), and Dusty Johnson (SD), this proposal seeks to clarify the oversight roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) concerning cryptocurrencies.

Key Provisions of the Draft Bill

Regulatory Clarity: The bill delineates the responsibilities of the CFTC and SEC, aiming to reduce jurisdictional ambiguities that have long plagued the crypto industry.

Decentralization Criteria: It introduces a framework to assess whether a digital asset is sufficiently decentralized, which would influence its classification and regulatory treatment.

Investor Protections: Amendments to existing laws, such as the Securities Investor Protection Act of 1970, are proposed to enhance consumer safeguards in the digital asset space.

Transparency Measures: The draft mandates disclosures for crypto project members holding more than 1% of a token's total supply, aiming to curb potential market manipulation by large stakeholders.

Political Landscape and Next Steps

While the bill represents a significant step toward regulatory clarity, it faces opposition from some Democratic lawmakers. Representative Maxine Waters has expressed concerns about the bill's potential to favor industry interests over consumer protections and has indicated plans to block related hearings.

A joint hearing by the House Financial Services Subcommittee on Digital Assets and the House Agriculture Subcommittee on Commodity Markets is scheduled for May 7, 2025, to discuss the bill further.

This legislative effort builds upon the previous Financial Innovation and Technology for the 21st Century Act (FIT21), which passed the House in May 2024 but did not advance in the Senate.

The outcome of this bill could significantly impact the regulatory environment for digital assets in the United States,