- Lawmakers released a new draft bill to bring clear rules to crypto markets and define agency roles.
- The bill says mining staking and user rewards are not securities and do not count as asset sales.
- DeFi platforms will avoid strict rules if they do not hold user funds or control customer assets.
On May 5, key lawmakers released a draft bill to create a unified regulatory framework for digital assets in the United States. The proposed legislation aims to resolve ongoing confusion between federal agencies overseeing the crypto market.
Draft Bill Targets Regulatory Gaps
Draft legislation prepared by the House Financial Services and Agriculture Committees defined clear oversight duties for the SEC and the CFTC. The regulatory uncertainty which was delaying innovation and compliance has led the industry to push for this recent shift.
The proposed bill establishes precise regulatory responsibilities which detail actions for both the SEC and CFTC to fulfill. It designates the CFTC to regulate digital commodities. The SEC retains oversight of digital assets classified as securities.
New Definitions Aim to Clarify Crypto Terms
The proposal defines terms such as digital commodity, stablecoin, and blockchain system. Lawmakers included these terms to provide legal clarity across all market activities. The bill specifies that activities like mining, staking, or user rewards will not be treated as securities. These definitions could prevent legal disputes and reduce confusion for developers and investors.
Entities dealing with crypto trading and customer interaction and crypto custody must complete registration while complying with disclosure obligations. The measures function to safeguard client safety while simultaneously enhancing market visibility. The draft bill establishes standards for digital commodity exchanges and brokers and dealers to comply with. This section grants the CFTC clear authority over these actors.
DeFi Protocols Receive Special Consideration
The bill includes provisions that exempt decentralized finance (DeFi) protocols from traditional financial rules. This exemption applies only if the platforms do not hold user assets. The draft also supports self-custody solutions, offering flexibility for users who manage their assets independently. Lawmakers see this as a balance between innovation and risk management.
Bipartisan Effort Sets Path Forward
The proposal stems from bipartisan work in the 118th Congress to address crypto regulation. Lawmakers plan to gather public input before finalizing the bill. They also intend to coordinate with the Trump administration for future implementation. Committees emphasized collaboration to create lasting rules that protect users and foster innovation.
A scheduled hearing on Tuesday will examine the draft bill’s impact on digital markets. Two subcommittees will lead the session and question experts and stakeholders. Lawmakers will use the session to gather feedback and make necessary adjustments. Industry players expect the hearing to guide the bill’s next steps.
This legislative push comes as other nations adopt clearer crypto rules. Lawmakers aim to ensure the U.S. remains competitive in the global digital asset space.
