📜 U.S. Lawmakers Unveil Sweeping Crypto Market Structure Bill to Clarify Industry Oversight

Washington, D.C., May 5, 2025 — In a pivotal move that could redefine the digital asset landscape in the United States, House lawmakers today introduced a comprehensive new bill designed to establish a clear regulatory framework for cryptocurrency markets. The legislation, informally dubbed “Crypto Clarity Act”, seeks to delineate the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing various types of digital assets.

The proposed bill builds on the momentum of the 2023 FIT21 initiative, which aimed to address regulatory gaps in the rapidly evolving crypto ecosystem. This new draft goes further by proposing a dual-agency model in which the SEC would primarily oversee crypto assets deemed “digital securities,” while the CFTC would regulate “digital commodities,” such as Bitcoin and Ether.

“The lack of clarity in our current regulatory environment has created uncertainty for investors and innovators alike,” said Rep. Katie Hill (D-CA), one of the bill’s sponsors. “This legislation provides a coherent structure that balances innovation with investor protection.”

📊 Key Provisions of the Bill:

• Clear Definitions: The bill proposes precise definitions for digital commodities and digital securities, enabling more consistent interpretation across agencies and courts.

• Registration Pathways: Crypto firms would be able to register with either the SEC or CFTC based on their asset classification, reducing regulatory friction.

• Disclosure and Consumer Protections: New standards for transparency, token issuer disclosures, and user asset custody requirements.

• Stablecoin Oversight: A special provision outlines collaboration between federal and state regulators for stablecoin issuance, echoing concerns raised by previous regulatory proposals.

🧭 Industry Reaction

The crypto industry has long lobbied for clearer federal guidance, particularly as enforcement actions by the SEC have increased. The Blockchain Association and other advocacy groups have cautiously welcomed the bill, calling it a “step in the right direction.”

“We’re encouraged by Congress taking action. If passed, this bill could provide the legal certainty that crypto developers and investors desperately need,” said Kristin Smith, CEO of the Blockchain Association.

However, not all reactions have been positive. Some critics argue that the proposal still gives too much discretionary power to the SEC and does not adequately address decentralized finance (DeFi) protocols or non-custodial services.

🔮 What’s Next?

The bill now heads to committee review, where lawmakers are expected to hold hearings and consult with both federal regulators and industry leaders. Given the bipartisan interest in crypto reform, especially in light of the 2024 election cycle, the bill is likely to be a central topic in upcoming congressional sessions.

If passed, the Crypto Clarity Act could finally lay the foundation for a unified federal approach to digital asset regulation, shaping the future of blockchain innovation in the U.S.