#USHouseMarketStructureDraft

The Digital Asset Market Structure Discussion Draft (May 5, 2025) defines a digital commodity as a digital asset in a mature blockchain system, regulated by the CFTC. A mature system is open-source, automated, public, and decentralized (no entity controls >20% of tokens/voting power). Qualifying assets are generated by the blockchain, used for voting in decentralized governance, or for transaction validation. Assets tied to investment contracts or issuer profits remain SEC-regulated securities unless decentralized (>10% control threshold). Pre-existing tokens (e.g., XRP) may qualify case-by-case if partially decentralized. Digital commodities are exempt from SEC oversight, with CFTC regulating spot markets. Secondary market trading is exempt unless profit-linked. Non-custodial DeFi protocols avoid broker/dealer registration, and retail investors gain access without wealth restrictions, promoting innovation and market democratization.