The US House of Representatives has released a discussion draft for a crypto market structure bill, aiming to establish a regulatory framework for digital assets. Here's what's included¹ ²:
- Regulatory Roles: The Securities and Exchange Commission (SEC) will oversee digital assets considered investment contracts, while the Commodity Futures Trading Commission (CFTC) will regulate digital commodities and spot markets.
- Decentralization Test: A project is considered decentralized if no single party has unilateral control, and if any party holds more than 10% of the token supply, they must disclose this information while the network remains centralized.
- Investor Access: The bill removes wealth and income restrictions for retail investors, allowing broader access to digital asset markets.
- Stablecoin Definition: Stablecoins are defined under the draft bill without being categorized as securities, but a separate stablecoin bill has faced resistance in the Senate.
- Tax Reform: There's growing discussion around changing the tax treatment of crypto transactions, with some industry voices calling for eliminating capital gains tax on Bitcoin to enable its use as currency.
The bill's implications³:
- Clearer Regulations: The draft aims to provide regulatory clarity for the digital asset ecosystem, protecting consumers and fostering innovation.
- CFTC Dominance: The bill would make the CFTC the dominant crypto regulator, although the SEC would retain jurisdiction until decentralization is proven.
- Industry Feedback: The House committees are seeking public feedback on the discussion draft to refine and advance the bill.
Key supporters of the bill include:
- Chairman Glenn Thompson: Emphasizes the need for regulatory clarity in digital asset markets.
- Chairman French Hill: Highlights the importance of protecting consumers and safeguarding the long-term integrity of digital asset markets.
- Chairman Dusty Johnson: Advocates for a commonsense regulatory regime to support digital asset investment and innovation.