The U.S. House of Representatives has released a new draft of the crypto market structure bill, outlining significant changes to the regulation of digital assets. The draft, published on May 5, 2025, by the House Financial Services and Agriculture Committees, aims to provide clearer frameworks for both investors and regulators in the evolving cryptocurrency space.
The proposed bill addresses the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), proposing a more defined division of responsibilities. Under this new structure, the SEC would regulate digital assets considered investment contracts, while the CFTC would oversee digital commodities and their spot markets. This separation is designed to address earlier debates surrounding crypto regulation and clarify which assets fall under which jurisdiction.
A key feature of the bill is the introduction of a decentralization test for digital assets. Projects that remain under the control of a single party, with more than 10% of the token supply held by one entity, would still be considered centralized and subject to SEC oversight. Only once a network proves it is decentralized will the CFTC assume responsibility. The bill also emphasizes that digital commodities will not fall under securities laws unless they grant buyers rights to an issuer’s profits or assets.
Another pivotal aspect of the draft bill is its approach to retail investor access. By removing wealth and income checks, it opens up the crypto market to a broader range of investors, removing the need for accredited investor requirements that were previously seen as barriers to entry.
The bill also provides guidelines for digital commodity exchanges to register with the CFTC and suggests an early registration process for issuers. Additionally, it includes exemptions for decentralized finance (DeFi) protocols that do not exercise control over users’ funds, encouraging the growth of non-custodial platforms.
For stablecoins, the bill defines them without categorizing them as securities. However, the push for stablecoin regulation continues to face challenges in the Senate. Concerns raised by lawmakers, particularly regarding Tether, a major stablecoin issuer, have stalled progress on a comprehensive stablecoin bill.
While the draft bill marks an important step forward in defining crypto market regulation, further discussions are expected. A hearing titled “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century” will provide a platform to explore the bill’s implications further.
Additionally, there is increasing momentum for tax reforms in the crypto space, particularly regarding capital gains taxation. Industry leaders are advocating for changes, including the introduction of a de minimis exemption, which would exempt small crypto transactions from taxes.
As the draft bill continues to gain traction, the next steps in shaping U.S. digital asset policy will be closely watched by both the crypto industry and regulators.
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