#USHouseMarketStructureDraft

The U.S. House of Representatives' passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) marks a significant development in cryptocurrency regulation. This bipartisan legislation aims to delineate regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Under FIT21, digital assets are classified based on the decentralization of their underlying blockchain: assets on "functional and decentralized" blockchains fall under CFTC oversight as commodities, while those on "functional but not decentralized" blockchains are regulated by the SEC as securities [1].

The bill also introduces provisions for stablecoin regulation and anti-money laundering measures. Proponents argue that FIT21 provides much-needed clarity, fostering innovation and encouraging institutional investment. However, critics, including SEC Chair Gary Gensler, express concerns that the legislation may create regulatory gaps and undermine established investor protections

[1]. If enacted, FIT21 could reshape the U.S. cryptocurrency landscape by establishing clearer regulatory frameworks, potentially enhancing market stability and investor confidence.