#USHouseMarketStructureDraft May 5, 2025, U.S. House lawmakers introduced a comprehensive draft bill aimed at establishing a clear regulatory framework for digital assets. This effort builds on the earlier Financial Innovation and Technology for the 21st Century Act (FIT21) and seeks to clarify the roles of federal regulators such as the SEC and CFTC in overseeing the cryptocurrency market. The "Digital Asset Market Structure Discussion Draft" aims to reduce the dominance of large crypto firms and promote broader market participation. It proposes regulating digital assets based on their functional characteristics, with the SEC overseeing securities and the CFTC regulating commodities. Decentralization criteria are defined, and enhanced transparency and disclosure requirements are introduced for crypto projects to improve investor protection and market integrity. The draft also considers removing certain net worth requirements for participating in digital asset offerings.

Key Points of the Draft Bill:

Jurisdictional Clarity: Digital assets classified as securities (investment contracts) would be regulated by the SEC, while commodities (decentralized and utility-based tokens) would fall under the CFTC's oversight.

Decentralization Criteria: Specific thresholds, such as no single entity controlling more than