A Delayed Regulatory Revolution
In 2024, the cryptocurrency market has gradually transitioned from its initial 'wild era' to the mainstream financial system, but the ambiguity of regulation has always loomed over the industry like the sword of Damocles. Now, U.S. lawmakers have finally taken a crucial step— the House Financial Services Committee and the Agricultural Committee jointly published a discussion draft of the (Digital Asset Regulatory Framework Bill), aimed at establishing clear regulatory rules for cryptocurrencies, stablecoins, NFTs, and other digital assets.
This draft is led by four heavyweight lawmakers, including House Financial Services Committee Chair French Hill, Agricultural Committee Chair G.T. Thompson, and the chairs of the Digital Assets Subcommittee, Bryan Steil and Dusty Johnson. It not only expands upon the previous (FIT21 Bill) but also attempts to resolve the power struggle between SEC and CFTC while strengthening information disclosure and providing a compliance path for the industry.
Is the introduction of this bill a 'reassurance' for the crypto industry, or the beginning of stricter regulation? This article will delve into its core content and explore the profound impact it may have on the market.
I. Core of the Bill: Information Disclosure, Regulatory Division, and Compliance Path
According to Forbes reporter Eleanor Terrett's interpretation, this bill revolves around three key points:
1. Mandatory Information Disclosure: Transparency Becomes a Hard Requirement
The draft requires digital asset developers to disclose key project information, including:
· Project Team Background
· Token Economic Model (such as Supply, Distribution Mechanism)
· Technical Architecture and Potential Risks
· Use of Funds
This regulation directly targets the frequent fraud, exit scams, and rug-pull incidents that have occurred over the past few years, such as the collapse of Luna and the FTX crisis. In the future, if project parties fail to provide adequate disclosures, they may face severe penalties from the SEC.
2. Division of Regulatory Authority between SEC and CFTC: Ending 'Regulatory Arbitrage'
For a long time, there has been a jurisdictional dispute between SEC and CFTC regarding digital asset regulation—SEC believes most tokens are securities and should be regulated by it; while CFTC claims that Bitcoin, Ethereum, etc. are commodities and should fall under its jurisdiction. This ambiguity has led many projects to operate in the 'regulatory gray area'.
The new bill attempts to clarify the division of responsibilities:
· SEC is Responsible for Regulating Security Tokens (such as tokens issued through ICOs);
· CFTC is Responsible for Regulating Commodity Tokens (such as Bitcoin, Ethereum);
· At the same time, the bill provides a clear registration process for project parties to avoid the chaos of dual regulation.
3. Providing Compliance Pathways: Companies No Longer 'Barefoot'
In the past, many crypto companies chose to operate offshore (such as Binance) due to regulatory uncertainty or were forced to distance themselves from the U.S. market (such as Coinbase's long compliance struggles). The new bill proposes:
· Allowing Projects to Fundraise Under SEC Rules (such as Compliant ICOs);
· Allowing Registration with CFTC to Legally Conduct Derivatives Trading;
· Establish a 'Transition Period' to Allow Existing Projects to Gradually Adapt to New Regulations.
This change may attract more companies back to the U.S. market, promoting the industry's development towards compliance.
II. Industry Impact: Who Benefits? Who is Affected?
Beneficiaries: Compliant Players and Institutional Capital
1. Mainstream Exchanges (Coinbase, Kraken, etc.): Clarifying Regulation Will Reduce Legal Risks and Enhance Investor Confidence.
2. Traditional Financial Institutions: Institutions like Goldman Sachs and JPMorgan have been cautious in entering the market due to regulatory ambiguity, and the new bill may accelerate their involvement in crypto custody, ETFs, and other businesses.
3. Long-term Builders: Compliance-focused Blockchain Projects (such as Ethereum, Solana) Will More Easily Gain Mainstream Recognition.
Challengers: Anonymous Projects and 'Gray Area' Players
1. Anonymous Coins (such as Monero, Zcash): Strict KYC/AML Requirements May Limit Their Development.
2. DeFi Protocols: Many Decentralized Finance Projects Currently Lack Clear Legal Entities, How to Adapt to Regulation Remains a Challenge.
3. Small Market Cap Altcoins: Information Disclosure Costs Might Eliminate a Batch of Low-Quality Projects.
Potential Controversy: Balancing Innovation and Regulation
Some in the crypto community worry that excessive regulation may stifle the decentralized spirit of the industry. For example:
· If SEC Classifies Most Tokens as Securities, Will It Stifle Technological Innovation?
· Will CFTC's Derivatives Regulation Restrict DeFi Leverage Trading?
III. Global Perspective: Can the U.S. Lead Crypto Regulation?
Currently, the EU has passed the (Markets in Crypto-Assets Regulation) (MiCA), and places like Singapore and the UAE are also advancing relevant legislation. If this draft in the U.S. is ultimately passed, it could become a benchmark for global digital asset regulation, but it also faces challenges:
1. Enforcement Difficulty: How to Regulate Cross-border DeFi Protocols? How to Coordinate State Laws (such as New York's BitLicense)?
2. International Competition: Will Strict Regulation Force Companies to Move to More Lenient Jurisdictions?
A 'Watershed Moment' for the Crypto Industry
The discussion draft of the (Digital Asset Regulatory Framework Bill) in the U.S. marks a critical step in the transition of cryptocurrency from 'wild growth' to 'institutionalization'. It provides certainty for the industry but may also reshape the market landscape—those who comply will survive, while those who violate will be eliminated.
In the coming months, the details of this bill, congressional debates, and lobbying by stakeholders will determine its final form. However, this regulatory change is already irreversible, and its impact may extend far beyond U.S. borders, defining the future rules for global digital assets.