New digital asset legislation to explain US cryptocurrency regulation laws was introduced by the House Financial Services and House Agriculture Committees. According to the draft legislation officials have anticipated, the SEC and CFTC have established distinct regulatory functions in the crypto industry.
The recently released discussion draft states that the CFTC maintains the authority to oversee crypto assets when classified as commodities. Under ongoing provisions from the SEC, the commission retains exclusive oversight of investment contracts at digital asset offerings until decentralized development reaches named stages of decentralization.
The legislation establishes the decentralized network test, a tool for evaluating blockchain independence. The regulation demands solo control limitations and public identification of owners who possess 10 percent or more of the token minted during centralization development.
A blockchain achieves maturity based on its operational capability with built-in value, clear rules, and decentralization from control mechanisms. A network qualifies when all parties combined own less than 20 percent of its total supply.
New Rules Set Ground for Decentralization and Investor Access
A new version of this bill has removed former limits regarding digital asset access, which were based on wealth levels. The market expects to invite ordinary investors previously restricted from participating in these new rules.
The bill focuses on decentralized finance (DeFi) protocols alongside other aspects. The bill permits non-custodial projects to bypass regulation when they operate without discretionary authority and fulfill specific requirements.
The new law prevents stablecoins from receiving a definite classification status for securities, delivering much-needed clarity during ongoing regulatory disputes. Senate Minority Leader Chuck Schumer reported resistance towards stablecoin legislation by revealing his concerns about the Tether platform.
According to Coinbase’s Chief Policy Officer Faryar Shirzad, the bipartisan effort behind the bill reflects Congress’s urgency in fostering crypto innovation while ensuring consumer protections.
Lawmakers must continue deliberating about the bill, which remains under draft status. The release of the draft represents a significant advancement in creating an extensive regulatory structure for the booming digital asset sector.
