#USHouseMarketStructureDraft

On May 5, 2025, the U.S. House of Representatives introduced the Discussion Draft on the Structure of the Digital Asset Market, a comprehensive legislative proposal aimed at establishing a clear legal framework for digital assets. This initiative seeks to delineate the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), provide definitions for digital commodities, and enhance investor protection.

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🔍 Key Highlights of the Draft

1. Clarifying Regulatory Authority

The draft proposes a clear division of oversight responsibilities:

SEC Oversight: Digital assets operating as investment contracts or under centralized control will fall under the jurisdiction of the SEC.

CFTC Oversight: Assets deemed to be digital commodities, particularly those that are decentralized, will be regulated by the CFTC.

This distinction aims to address long-standing ambiguities regarding regulatory authority over different digital assets.

2. Decentralization Criteria

To determine the appropriate regulatory authority, the draft introduces criteria for evaluating decentralization:

Token Distribution: No entity may control more than 10% of the token supply.

Network Characteristics: The blockchain must be open-source, fully operational, and not subject to unilateral control.

These measures are intended to ensure that truly decentralized networks are not subjected to securities regulation.