U.S. House to Review Cryptocurrency Market Structure Bill in June

By SARTAJ SHAHIDZAI

Washington, D.C. — May 2025

In a pivotal step for the regulation of digital assets, the U.S. House of Representatives is set to review a landmark cryptocurrency market structure bill this June. The bipartisan legislation aims to establish a comprehensive regulatory framework for the burgeoning crypto industry, offering long-awaited clarity on the roles of federal agencies and the legal classification of digital assets.

A Move Toward Regulatory Certainty

The bill, known as the Financial Innovation and Technology for the 21st Century Act (FIT21), seeks to delineate the oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under the proposed framework, most cryptocurrencies would be treated as commodities under the purview of the CFTC, while digital assets that behave like securities would remain under the SEC’s authority.

House Financial Services Committee Chair Patrick McHenry (R-NC), one of the bill’s key sponsors, emphasized the importance of the legislation for innovation and investor protection. “We’re creating a clear rulebook that empowers entrepreneurs while safeguarding consumers,” McHenry stated. “This bill is not just about oversight—it's about securing America’s leadership in financial technology.”

Industry and Investor Impact

Crypto industry leaders have long called for clearer guidelines to reduce legal ambiguity and encourage institutional adoption. The bill outlines registration processes for digital asset exchanges and custodians, mandates proof of reserves, and introduces compliance obligations aimed at enhancing market transparency.

Supporters argue that a robust regulatory regime will attract capital, reduce fraud, and help integrate digital assets into the broader financial system. “Regulatory clarity is a prerequisite for innovation,” said Sheila Warren, CEO of the Crypto Council for Innovation. “This bill is a critical step toward unlocking the full potential of blockchain technology in the U.S.”

However, not everyone is on board. Critics warn that the bill could undermine investor protections by shifting power away from the SEC, an agency traditionally known for stricter enforcement. Some Democratic lawmakers and consumer advocacy groups are urging revisions to strengthen safeguards and prevent potential regulatory arbitrage.

Political and Global Implications

The House review comes amid increasing international competition in crypto regulation. The European Union has already implemented its Markets in Crypto-Assets (MiCA) regulation, and jurisdictions such as the United Kingdom, Singapore, and the United Arab Emirates are aggressively positioning themselves as crypto-friendly hubs.

“Without clear, forward-looking laws, we risk ceding leadership in this space to other nations,” warned Rep. French Hill (R-AR), chair of the Subcommittee on Digital Assets. The FIT21 Act, if passed by the House, would then