tl;dr
House Republicans released a draft bill proposing a federal framework to regulate the cryptocurrency industry in the US. The legislation, introduced by leaders of the House Financial Services and Agriculture Committees, aims to clarify regulatory responsibilities between the SEC and CFTC, define key...
House Republicans have introduced a draft bill proposing a comprehensive federal framework to regulate the cryptocurrency industry in the United States.
The legislation, spearheaded by leaders from the House Financial Services and Agriculture Committees, aims to clarify regulatory roles between the SEC and the CFTC, define essential blockchain and crypto terminology, and establish registration requirements for digital asset exchanges, brokers, and dealers.
Notably, the draft preserves protections for decentralized finance (DeFi) protocols and supports individual self-custody, explicitly prohibiting restrictions on personal wallet custody.
It also promotes joint rulemaking efforts and studies on crypto innovations like DeFi, NFTs, and blockchain infrastructure through expanded innovation offices in federal agencies.
Key provisions include clear definitions for terms such as digital commodity, blockchain system, decentralized governance, permitted payment stablecoin, and mature blockchain system.
Distributions from mining, staking, or user rewards—referred to as “end user distributions”—are explicitly excluded from classification as securities or sales under current laws.
The bill introduces registration pathways for commodity exchanges and brokers under CFTC’s oversight while allowing SEC jurisdiction over securities and hybrid assets.
Entities involved in custody, trading facilitation, or customer interfacing are required to comply with registration and disclosure standards.
The bill’s sponsors highlight the urgency of closing regulatory gaps to provide much-needed certainty to developers and users.
House Financial Services Chairman French Hill called the draft a durable framework to protect consumers and maintain U.S. leadership in digital innovation.
Subcommittee Chairs Bryan Steil and Dusty Johnson emphasized the legislation as a milestone that could usher in a golden age of digital assets and keep the U.S. competitive in the global crypto landscape.
To advance the legislative process, a joint committee hearing titled “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century” was scheduled to gather public input and stakeholder feedback.
Overall, the proposed bill aims to resolve longstanding regulatory uncertainty, foster responsibility, and encourage innovation within the digital asset ecosystem across the United States.