New crypto bill draft seen to curb big crypto firm influence
The "Digital Asset Market Structure Discussion Draft" introduced by House Republicans aims to reduce the dominance of large crypto firms and encourage broader market participation. Key changes include defining an affiliated person as anyone owning over 1% of a digital commodity, down from 5%, which may limit big firms' influence. The draft establishes the SEC as the primary regulator for crypto networks until they are sufficiently decentralized and exempts certain decentralized finance trading protocols from registration as digital commodity brokers. Digital commodities are referred to as "investment contract assets," distinguishing them from traditional assets. The draft also outlines a process for crypto firms to raise funds under SEC oversight and mandates joint rulemaking by the CFTC and SEC for asset delisting. House committee members emphasize the need for a clear regulatory framework to foster innovation in the U.S. crypto market. However, Democratic opposition is evident, with plans to block a related hearing.
