#USHouseMarketStructureDraft U.S. House Digital Asset Market Structure Discussion Draft Summary
On May 5, 2025, the U.S. House Financial Services Committee and House Agriculture Committee released a discussion draft of a bill aimed at establishing a regulatory framework for digital assets in the United States. This draft builds on prior efforts, such as the Financial Innovation and Technology for the 21st Century Act (FIT21), to clarify the regulatory roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing cryptocurrencies and related markets.
Regulatory Division:
The SEC will regulate digital assets classified as investment contracts, typically centralized projects.
The CFTC will oversee digital commodities and their spot markets, becoming the dominant regulator for decentralized assets.
A decentralization test ensures projects are not under unilateral control, exempting qualifying assets from SEC oversight.
Digital Commodities Definition:
Transactions involving digital commodities on secondary markets are not classified as securities unless they grant ownership, profits, or asset rights in the issuer’s business.
Digital commodities may derive value from blockchain systems, offer voting rights in decentralized governance, or validate blockchain transactions.
Retail Investor Access:
Removes wealth and income restrictions, eliminating accredited investor checks to broaden market participation.
Decentralized Finance (DeFi):
Exempts non-custodial DeFi protocols that do not exercise discretionary control over users’ funds.
Stablecoins:
Defined without being categorized as securities, though a separate stablecoin bill faces Senate resistance.
Registration and Rulemaking:
Outlines CFTC registration for digital commodity exchanges and offers optional early registration for issuers.
Encourages joint rulemaking between the SEC (under new chair Paul Atkins) and CFTC.
Implications
Clarity and Innovation: The draft aims to provide regulatory clarity, fostering innovation while protecting consumers.
Reduced SEC Oversight: Most top crypto assets could be exempt from SEC regulation if certified as originating from “mature blockchain systems” (open-source, automated, and not controlled by a single entity).
Challenges: Democratic opposition, including a planned walkout during a May 6, 2025, hearing, cites concerns over provisions like the president’s participation in crypto ventures.
Context
The draft follows FIT21’s progress in 2024 and aligns with President Trump’s agenda to promote crypto innovation.
Public discussion includes calls for tax exemptions on small crypto transactions (e.g., Lummis-Gillibrand bill).
Next Steps
A joint hearing by the House Financial Services and Agriculture Subcommittees on May 6, 2025, will discuss the draft.
Feedback from stakeholders and collaboration with the Senate and Trump administration are expected to refine the legislation.
Note: This summary is based on available sources and may not capture all details of the draft. For the full text, refer to official House committee publications.