In a significant move for the U.S. cryptocurrency industry, lawmakers have unveiled a new draft bill aimed at establishing a clear regulatory framework for digital assets. The legislation, introduced by the U.S. House of Representatives’ Financial Services and Agriculture Committees, aims to resolve ongoing uncertainties in the sector by defining the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). This draft builds on the previous Financial Innovation and Technology for the 21st Century Act (FIT21) and seeks to provide much-needed clarity for both investors and developers in the crypto space.
A Step Toward Regulatory Clarity
The proposed bill, released on May 5, 2025, is seen as the next phase in Congress’s effort to regulate the burgeoning crypto industry. Representative French Hill, chairman of the Financial Services Committee, emphasized that the bill could deliver the “regulatory clarity” that the industry has long sought. The bill also outlines a comprehensive framework to protect consumers, foster innovation, and close existing gaps in oversight, which have been a concern for both businesses and lawmakers alike.
Clear Jurisdictions for SEC and CFTC
One of the primary goals of the new bill is to establish clear boundaries between the SEC and CFTC, two key regulatory bodies that oversee different aspects of the financial markets. As cryptocurrency continues to grow, defining which body regulates which part of the market has been a thorny issue. The draft bill aims to resolve this by giving crypto developers the option to either register with the SEC for securities-related activities or the CFTC for digital commodities trading.
A Framework for Public Disclosures
The draft legislation also includes provisions requiring cryptocurrency projects to make public disclosures, similar to those required in traditional financial markets. This would ensure that users and investors are better informed about the risks associated with crypto assets. The bill’s disclosure requirements are designed to increase transparency, a crucial factor for building trust in the crypto ecosystem and ensuring that market participants can make informed decisions.
A Joint Hearing for Public Debate
On May 7, 2025, the digital assets subcommittees of the Financial Services and Agriculture Committees are scheduled to hold a joint hearing to discuss the future of digital assets, where the draft bill will be under intense scrutiny. This hearing is expected to bring together industry experts, lawmakers, and other stakeholders to explore the implications of the proposed legislation. The joint hearing will provide a platform for lawmakers to refine the bill and gather feedback from the broader crypto community.
Challenges Ahead for Crypto Regulation
The proposed bill comes at a time when the U.S. cryptocurrency industry is grappling with a range of regulatory challenges. These include the looming question of stablecoin regulation, which is being addressed separately in another bill. Stablecoin regulation has become a central focus for crypto advocates, with stablecoins playing a key role in the digital asset ecosystem. Both the House and Senate have advanced stablecoin bills that are awaiting further action.
Crypto Lobbyists Push for Action
As lawmakers debate the future of crypto regulation, three major lobbying organizations—Blockchain Association, Crypto Council for Innovation, and the Digital Chamber—are pushing for quicker action on the stablecoin bill. The groups issued a joint statement urging the Senate to move forward with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Their goal is to establish a clear, bipartisan framework for stablecoins that would provide certainty and security for the crypto industry.
Conclusion: A Turning Point for U.S. Crypto Regulation
The unveiling of the crypto market structure bill marks a pivotal moment in the regulation of digital assets in the United States. With a clear focus on defining the roles of the SEC and CFTC, providing greater transparency, and offering a framework for the industry to thrive, this bill represents a critical step toward a more secure and regulated crypto market. As the bill moves through the legislative process, it will be important to watch how lawmakers address the concerns of the industry and ensure that the framework fosters innovation while protecting consumers.
