🔥US House Crypto Market Structure Bill‼️
The US House of Representatives has released a draft crypto market structure bill, aiming to establish a regulatory framework for digital assets. This bill is a significant step towards providing clarity and structure to the digital asset ecosystem.
💥Key Points
🔹️SEC and CFTC Roles:
The SEC will oversee digital assets considered investment contracts, while the Commodity Futures Trading Commission (CFTC) will regulate digital commodities and their spot markets.
🔸️Decentralization Test:
A clear decentralization test is included, requiring that no single entity has unilateral control over a digital commodity. Projects with over 10% ownership by a single party must disclose while remaining centralized.
🔹️Investor Access:
The draft removes wealth and income restrictions for retail investors, opening the market to a broader audience and eliminating accredited investor checks.
🔸️DeFi Exemptions:
The bill proposes exemptions for decentralized finance (DeFi) protocols that are non-custodial and don't exercise discretionary control over users' funds.
🔹️Stablecoin Definitions:
Stablecoins are defined without being categorized as securities, but a separate stablecoin bill has encountered resistance in the Senate.
💥Key Provisions
🔹️Digital Commodity Transactions: Transactions involving digital commodities won't be classified as securities unless they grant ownership rights in the issuer's business, profits, or assets.
🔸️Disclosure Requirements:
Digital asset developers will have to comply with disclosure requirements.
🔹️Optional Early Registration:
Issuers can opt for early registration, and the bill emphasizes joint rulemaking between the SEC and CFTC.
💥Impact and Next Steps
🔹️Regulatory Clarity:
The draft aims to provide much-needed regulatory clarity for the digital asset ecosystem.
🔸️Joint Hearing:
A joint hearing on market structure legislation is scheduled, where lawmakers will discuss the draft and gather feedback.
