The U.S. House Financial Services Committee and House Agriculture Committee released a discussion draft of a crypto market structure bill on Monday, May 5, 2025, aiming to create a more structured and transparent regulatory environment for cryptocurrencies and related markets.123+4
Under the proposed framework, the Securities and Exchange Commission (SEC) will regulate digital assets that are considered investment contracts, while the Commodity Futures Trading Commission (CFTC) will oversee digital commodities and their spot markets.123+4 The draft also removes wealth and income restrictions for retail investors, opening the market to a wider public.123+4
The bill introduces an optional early registration process for issuers and encourages joint rulemaking between the SEC and CFTC.123+4 For decentralized finance (DeFi), the draft proposes exemptions for protocols that are non-custodial and do not exercise discretionary control over users' funds.123+4 Stablecoins are defined under the draft without being categorized as securities.123+4
The draft clarifies that transactions involving the sale of digital commodities on the secondary market will not be classified as securities unless they grant the buyer ownership rights or benefits from the issuer's profits or assets.123+4 This distinction is crucial for fostering a more favorable environment for crypto trading and investment.123+4
The committees aim to establish clear lines between the jurisdictions of the SEC and CFTC, addressing concerns raised during earlier debates over the Financial Innovation and Technology for the 21st Century Act (FIT21).