#USHouseMarketStructureDraft The U.S. House's Digital Asset Market Structure Discussion Draft introduces a clearer regulatory framework for digital commodities, aiming to distinguish them from securities under specific conditions. This move could have significant implications for liquidity, compliance, and the broader crypto market.

Potential Impact on Secondary Markets

1. Boosted Liquidity : By defining digital commodities separately from securities, the draft could encourage more trading activity, reducing uncertainty for investors and exchanges.

2. Regulatory Clarity : The framework assigns oversight responsibilities to the CFTC for digital commodities and the SEC for securities , potentially streamlining compliance.

3. Retail Investor Access : The draft removes wealth restrictions, allowing broader participation in digital asset markets⁽²⁾.

Could More Tokens Avoid Securities Disputes?

- Decentralization Test : The draft outlines criteria for determining whether a blockchain network is sufficiently decentralized, which could help projects avoid securities classification.

- Issuer Control Limits : If a single entity holds more than 10% of a token supply , it must disclose this while the network remains centralized.

- Legal Precedent : If enacted, these rules could reduce SEC enforcement actions against crypto projects, fostering innovation while maintaining investor protections.