
The "Big and Beautiful Act" is the nickname for the (FIT for the 21st Century Act) by the crypto industry, originally a legislative draft proposed by the U.S. House of Representatives for a comprehensive regulatory framework for crypto assets.
💚The core goal of this bill is: To provide a clear and unified compliance roadmap for cryptocurrencies, blockchain, and Web3, making the U.S. a global innovation center for digital assets.
1️⃣Why is it called "Big and Beautiful"?
This is the nickname for the bill in the Chinese crypto community, meaning:
🔹Big: Broad coverage, from the definition of crypto assets, regulatory division of labor to market structure
🔹And: Emphasizes the collaborative division of labor between the SEC and CFTC to resolve regulatory conflicts
🔹U.S.: Made in the U.S., if passed, will greatly promote the wave of global compliance
2️⃣Current progress of the bill (as of 2025)
🔹2023: Proposed by the U.S. House Financial Services Committee and Agriculture Committee
🔹2024: Passed the vote of the House Financial Committee, gaining some bipartisan support
🔹2025: Not yet finalized as law, still needs to pass the Senate + presidential signature
Although it has not been officially implemented yet, its likelihood of passing and market impact is extremely high, widely seen in the industry as a "compliance turning point" for the crypto industry.
3️⃣Core content of the Big and Beautiful Act:
🔹Clarifies whether tokens are commodities or securities: Based on whether the project is "decentralized" as the standard, determines whether it is regulated by the CFTC (commodity) or SEC (security).
🔹First proposed "decentralization criteria": For example: no single controlling person, governance decentralized, on-chain governance predominates, etc.
🔹Unified registration and disclosure mechanism: Provides flexible and transparent registration channels, suitable for early projects and mature agreements.
🔹Establish a digital goods market structure: Set up new licenses for crypto asset trading platforms (similar to a crypto version of the NYSE)
🔹Define the boundaries of SEC / CFTC responsibilities: Prevent the two regulatory agencies from "competing for work", enhancing regulatory efficiency and clarity
4️⃣Impact on the Web3 industry
🔹Project parties: Standards to rely on, fundraising, token issuance, and interactions become safer
🔹Exchanges: Compliance pressure reduced, CEX/DEX licensing development
🔹Investment institutions: Legal certainty enhanced, releasing more US capital and pension funds to enter the market
🔹User experience: A safer, more transparent on-chain environment with lowered trust barriers
🔹Regulatory arbitrage: Will reduce the situation of "running to Singapore/Dubai", attracting projects back to the U.S.