#USHouseMarketStructureDraft

On May 5, 2025, U.S. House Republicans unveiled a comprehensive discussion draft of a digital asset market structure bill. This proposal aims to establish clear regulatory boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), providing long-sought clarity for the cryptocurrency industry.

Key Provisions of the Draft Legislation

Regulatory Jurisdiction: The bill delineates responsibilities between the SEC and CFTC. Digital assets deemed sufficiently decentralized would fall under the CFTC's oversight as commodities, while those considered centralized would remain under the SEC's jurisdiction.

Decentralization Criteria: A blockchain network would be classified as "mature" and decentralized if it operates openly, is fully developed, follows transparent rules, and lacks central control. Additionally, no single entity should hold more than 20% of the token supply.

Secondary Market Transactions: The draft clarifies that secondary market sales of digital commodities would not be subject to securities laws unless the transactions grant the buyer rights to the issuer’s profits or assets.

Investor Access: The proposal removes wealth and income restrictions for retail investors, broadening access to digital asset markets.

Stablecoin Classification: Stablecoins are defined within the draft without being categorized as securities, providing clarity for their treatment under U.S. law.

Political Developments

The bill has sparked partisan debate. Representative Maxine Waters, the leading Democrat on the House Financial Services Committee, has expressed concerns over President Donald Trump's increasing involvement in the crypto industry. She has indicated plans to block a joint hearing on the bill, citing the need for provisions that prevent government officials from profiting from crypto investments.

Despite these challenges, the House Financial Services and Agriculture Committees are scheduled to hold a joint hearing titled “American Innovation and the