US House Proposes Crypto Market Structure Draft Bill

Aims to clarify roles of SEC and CFTC, potentially stabilizing cryptocurrencies and impacting market trust.

Structured Framework for Crypto Markets

The new draft from the House introduces a structured framework for crypto markets. Representative French Hill, Chairman of the House Financial Services Committee, emphasizes that the bill seeks regulatory clarity to safeguard consumers and encourage innovation. “The bill aims to safeguard consumers, encourage innovation, and address regulatory shortcomings,” Hill stated, according to CoinDesk.

Representative Glenn “GT” Thompson, Chairman of the Agriculture Committee, asserts that the bill provides certainty for digital asset developers by clearly delineating the SEC and CFTC responsibilities. The proposed legislation will impact market structures by reshaping developer funding supervision.

Impact on Broader Crypto Markets

Broader crypto markets, rather than specific assets, face changes in oversight. The proposed legislation provides distinct roles for SEC and CFTC, aiding classification of assets as securities or commodities. Previous attempts, like the FIT21 proposal, faced criticism over SEC powers, emphasizing a new governance approach.

Potential outcomes hint at stronger market confidence through increased regulatory clarity, fostering innovation. On-chain activity might adjust as markets align with new regulations. The proposal underlines a landmark effort in balancing oversight and innovation for the expanding digital asset landscape.