#USHouseMarketStructureDraft

The US House Market Structure Draft refers to a recent proposal by House Republicans aimed at regulating the cryptocurrency industry. Introduced on May 5, 2025, the draft bill outlines a framework for digital asset regulation, defining key terms and asset types while splitting oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).¹

*Key Provisions:*

- *Digital Commodity Definition*: The bill defines digital commodities and blockchain systems, providing clarity on regulatory jurisdiction.

- *SEC and CFTC Roles*: The SEC will oversee securities and hybrid assets, while the CFTC will regulate digital commodities and spot markets.

- *Decentralization Test*: A project is considered decentralized if no single party has unilateral control, with specific guidelines for token supply distribution and disclosure requirements.

- *DeFi Protections*: Decentralized finance (DeFi) protocols and self-custody wallets are protected from strict regulation, exempting them from traditional financial regulations if they don't control user funds.

- *Investor Access*: The bill removes wealth and income restrictions for retail investors, allowing broader access to digital asset markets.²

*Legislative Process:*

A joint hearing titled "American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century" was scheduled to discuss the proposed bill and gather stakeholder feedback. The hearing aims to refine the draft and advance the legislative process.³

*Reactions:*

The proposal has received mixed reactions, with some lawmakers expressing concerns over the bill's alignment with former President Donald Trump's crypto-related positions. Democratic lawmakers, led by Ranking Member Maxine Waters, have raised concerns and may boycott the session or hold a parallel hearing.