#USHouseMarketStructureDraft

Digital Asset Market Structure Draft (Cryptocurrency Focus)The Digital Asset Market Structure Discussion Draft is a proposed legislative framework by the U.S. House Financial Services Committee and House Agriculture Committee, released in stages (e.g., June 2023 and May 2025). It aims to regulate cryptocurrencies and digital assets by clarifying the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Key points include:Regulatory Clarity: Defines digital assets as either securities (under SEC) or commodities (under CFTC). Digital commodities, like many top cryptocurrencies, are exempt from SEC oversight if traded on secondary markets and not tied to issuer profits or ownership.Decentralization Test: Projects must prove decentralization (e.g., no single party controls over 10% of tokens) to fall under CFTC’s lighter regulation.Investor Access: Removes wealth/income restrictions, allowing broader retail investor participation by eliminating accredited investor checks.DeFi and Stablecoins: Exempts non-custodial decentralized finance (DeFi) protocols from securities laws and defines stablecoins without classifying them as securities.Joint Rulemaking: Encourages SEC and CFTC collaboration, with provisions for early issuer registration with the CFTC.Context: Builds on the Financial Innovation and Technology for the 21st Century Act (FIT21), aiming to foster innovation while protecting consumers. A joint hearing was planned for May 6, 2025, to discuss the draft..