In late April 2025, House Republicans introduced a draft bill aimed at establishing a comprehensive regulatory framework for digital assets, in anticipation of the congressional hearing scheduled for May 6. This proposed legislation builds upon the foundation laid by previous initiatives such as FIT21, incorporating key updates to clarify the roles and responsibilities of federal regulatory agencies and to provide more precise guidance for innovators and investors within the cryptocurrency sector.
The draft bill proposes a formal delineation of oversight authority between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Under the proposed framework, the CFTC would assume regulatory authority over digital commodities, including Bitcoin, while the SEC would oversee digital assets that meet the characteristics of securities.
Additionally, the legislation outlines a regulatory structure for stablecoin issuers, digital asset exchanges, and custodians, mandating registration, customer protection measures, and transparency requirements.
Significantly, the bill underscores the importance of fostering innovation and seeks to establish a regulatory environment that supports, rather than inhibits, the continued development of blockchain and cryptocurrency technologies. It also proposes the formation of a joint advisory council, comprising industry experts and regulatory officials, to provide ongoing guidance on the implementation of the new regulatory framework.
As Congress prepares for the forthcoming May 6 hearing, this draft legislation sets the stage for critical negotiations that may significantly influence the future direction of digital asset regulation in the United States.
