#USHouseMarketStructureDraft

The U.S. House of Representatives is advancing the Financial Innovation and Technology for the 21st Century Act (FIT21), a comprehensive draft bill aimed at reshaping the digital asset market structure. Introduced by Republican leaders from the Financial Services and Agriculture Committees, the legislation seeks to delineate the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under the proposed framework, the SEC would oversee digital assets functioning as securities, while the CFTC would regulate those operating as commodities. This bifurcation intends to provide clearer guidelines for digital asset issuers and traders, fostering innovation while ensuring appropriate oversight. However, the bill has faced criticism from some lawmakers and industry experts who argue that it may stretch the CFTC's resources and weaken enforcement capabilities. The proposal is expected to undergo significant debate and revision as it progresses through the legislative process.