{"id":128654,"date":"2025-05-06T03:18:06","date_gmt":"2025-05-06T03:18:06","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=128654"},"modified":"2025-05-06T03:18:06","modified_gmt":"2025-05-06T03:18:06","slug":"new-crypto-bill-draft-seen-to-curb-big-crypto-firm-influence","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=128654","title":{"rendered":"New crypto bill draft seen to curb big crypto firm influence"},"content":{"rendered":"

Source: Cointelegraph.com NewsThe new \u201cDigital Asset Market Structure Discussion Draft\u201d introduced by House Republicans on May 5 could work to reduce the dominance of large crypto firms and promote more participation in the broader market, according to an executive from Paradigm.\u00a0
\nThe discussion draft, led by the House agricultural and financial services committee chairs Glenn Thompson and French Hill, is an \u201cincremental, albeit meaningful, rewrite\u201d of the Financial Innovation and Technology for the 21st Century Act (FIT21), Paradigm\u2019s vice president of regulatory affairs Justin Slaughter said in a May 5 X post.
\nOne-pager of the digital asset market structure discussion draft submitted by House Republicans on May 5. Source: US House Agriculture CommitteeOne of the major changes from FIT21 is that the draft defines an affiliated person as anyone who owns more than 1% of a digital commodity issued by the project \u2014 down from 5% in the FIT21 bill \u2014 a move Slaughter said may curb the influence of big crypto firms and lead to more participation in the crypto market.
\n\u201cThis is a portent of the entire bill. There are often criticisms of crypto being too dominated by a few large firms. This bill makes clear the regulatory regime proposed is going to push against that fact and strongly encourage more small-d \u2018democratization\u2019 of the space.\u201d
\nThe draft also defines a \u201cmature blockchain system\u201d as one that, together with its related digital commodity, is not under the \u201ccommon control\u201d of any person or group.
\nSource: Justin SlaughterThe Securities and Exchange Commission would be the main authority regulating activity on crypto networks until they become sufficiently decentralized, Slaughter noted.
\nThe draft also clarified that decentralized finance trading protocols are those that enable users to engage in a financial transaction in a \u201cself-directed manner.\u201d Protocols that meet this criterion are exempt from registering as digital commodity brokers or dealers.
\nThe draft also referred to digital commodities as \u201cinvestment contract assets\u201d to distinguish their treatment from stocks and other traditional assets under the Howey test.
\nAccording to Slaughter\u2019s analysis, securities laws won\u2019t be triggered unless the secondary sale of tokens also transfers ownership or profit in the underlying business.
\nCrypto firms would also have a path to raise funds under the SEC\u2019s oversight while also having a \u201cclear process\u201d to register their digital commodities with the Commodity Futures Trading Commission, the committee members said in a separate May 5 statement.
\nJoint rulemaking, procedures, or guidelines related to crypto asset delisting must be established by the CFTC and SEC should a registered asset no longer comply with rules laid out by the regulators.
\nA \u2018clear opportunity\u2019 to advance crypto innovation, rules once and for all
\nSpeaking about the need for a comprehensive crypto regulatory framework, the House committee members said crypto is a \u201cclear opportunity\u201d to advance innovation in the US \u2014 most notably through modernizing America\u2019s financial infrastructure and reinforcing US dollar dominance.
\nThe Republicans criticized the previous Biden administration and the Gary Gensler-led SEC for adopting a regulation-by-enforcement strategy rather than creating clear rules for market participants.
\nRelated: VanEck files for BNB ETF, first in US
\nMany crypto firms were stuck in \u201clegal limbo\u201d as a result of the unclear rules, which pushed some industry players overseas, where clearer rules exist, the House committee members said.
\n\u201cAmerica needs to be the powerhouse for digital asset investment and innovation. For that to happen, we need a commonsense regulatory regime,\u201d said Dusty Johnson, chairman of the subcommittee on commodity markets, digital assets and rural development.
\nSlaughter added: \u201cThis is the bill that will, finally, provide a clear regulatory regime on crypto that many have been calling for.\u201d
\nRepublicans already facing roadblocks over discussion draft
\nHouse Financial Services Committee Ranking Member Maxine Waters plans to block a Republican-led event discussing digital assets on May 6, a Democratic staffer told Cointelegraph.
\nThe hearing, \u201cAmerican Innovation and the Future of Digital Assets,\u201d is expected to discuss the new crypto markets draft discussion paper pitched by Thompson, Hill, and other committee members.
\nHowever, according to the unnamed Democratic staffer, the current rules require all members of the House Financial Services Committee to agree on such hearings.
\nMagazine: Crypto wanted to overthrow banks, now it\u2019s becoming them in stablecoin fightRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsThe new \u201cDigital Asset Market Structure Discussion Draft\u201d introduced by House Republicans on May 5 could work to reduce the dominance of large crypto firms and promote more… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128654"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128654"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128654\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128654"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}