US House of Representatives Announces Draft Law Regulating Digital Asset Market, Promising Legal Transparency, Investor Protection, and Reinforcing US Leadership.
The US political landscape recently witnessed an important move in the legal standardization of cryptocurrencies when the House Financial Services Committee officially released a new draft law on digital assets on May 5th. This is considered a significant historical step aimed at establishing a comprehensive legal framework for the rapidly developing crypto market in the United States.
New Legal Foundation for the Digital Asset Era
The draft law, introduced with the support of congressional leadership including Committee Chair French Hill, Agriculture Committee Chair G.T. Thompson, and Subcommittee Chairs Bryan Steil and Dusty Johnson, is the result of a long-standing bipartisan effort to create a favorable legal environment for the digital asset market.
"We have achieved a historic step in building bipartisan and bicameral consensus to form an effective legal framework for digital assets," Chair Hill noted. He emphasized that the draft "provides the necessary clarity for the digital asset ecosystem by protecting consumers and preserving the long-term integrity of the digital asset market in the US."
Reflecting the US's strategic vision in the global financial technology race, Subcommittee Chair Steil declared: "The golden age of digital assets has arrived, and the House is leading this process." He affirmed that the bill's goal is to "keep America at the forefront of financial innovation and global competition, while protecting consumers from fraudulent behavior."
According to Matthew Sigel, Head of Digital Assets Research at Vaneck, this draft brings "a significant upgrade" compared to previous proposals. A crucial breakthrough is the elimination of income and asset thresholds for retail investors, and the removal of strict requirements for professional investors and compatibility criteria.
The draft also introduces a "decentralization test" with high transparency requirements for ownership information, especially for individuals/organizations holding over 10% control when a project remains centralized. DeFi protocols that do not custody assets and do not interfere with user decisions will be exempt from many complex regulations.
Another notable point is the draft's clear definition of stablecoins without classifying them as securities, while establishing a joint regulatory process between SEC and CFTC to address overlapping jurisdictional issues.
Justin Slaughter, Vice President of Legal Affairs at Paradigm, assessed the draft as "a progressively adjusted version" compared to previous proposals, with significant improvements in oversight procedures and the path to recognizing decentralization. He noted: "Overall, this draft continues to position CFTC as the primary regulator for crypto, but maintains SEC's authority until the network achieves a decentralized state."
A subcommittee hearing is expected on May 6th, opening opportunities for deeper discussion about these new regulations and their impact on the future of the digital asset market in the US.
