#USHouseMarketStructureDraft The US House of Representatives has released a discussion draft of a bill aimed at establishing a regulatory framework for digital assets. This move is seen as a significant step towards providing clarity and certainty for the crypto industry. The bill proposes a hybrid model, dividing primary regulatory responsibility between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) based on factors like decentralization and functionality of the digital asset's blockchain system.¹ ²

*Key Provisions:*

- *Digital Commodities:* Transactions involving digital commodities won't be classified as securities if they don't grant purchasers ownership interest in the issuer's business, profits, or assets.

- *Decentralization Test:* A clear decentralization test is introduced, requiring no single entity to have unilateral control over a digital commodity. Projects that don't meet this criterion will face scrutiny.

- *Affiliated Persons:* The threshold for defining "affiliated persons" is lowered from 5% to 1% to promote broader market participation and reduce the influence of large crypto firms.

- *SEC and CFTC Jurisdiction:* The bill clarifies the jurisdictional divide between the SEC and CFTC, allowing digital asset projects to develop under well-defined rules for securities and commodities.

- *Consumer Protection:* The draft prioritizes consumer protection, fostering innovation while preventing market manipulation and ensuring fairness in digital commodity transactions.³ ⁴

*Next Steps:*

The House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence & House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development will hold a joint hearing entitled "American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century". This hearing aims to further discuss the proposed regulatory framework and gather feedback from industry experts.

#USHouseMarketStructureDraft #FOMCMeeting #MarketPullback $BTC $BNB