Discussion draft The highly talked about market structure bill aimed at establishing a system for regulatory systems for digital assets in the United States was released this Monday.
After facing criticism for FIT21’s dramatic restraint on the Securities and Exchange Commission (SEC) regulatory authority, the new bill aims to clearly portray the responsibility of the SEC and the Commodity Futures Trading Commission (CFTC). The former deals with cryptocurrency offerings, which are considered investment contracts, while the latter regulates the goods.
“Overall, this bill once again makes the CFTC the dominant crypto regulator, but gives SEC jurisdiction until the network establishes decentralization,” the Paradigm Justin Genocide said in X.
In particular, the bill establishes clear variance tests. It is not assumed that a single party will have unilateral control for a project to be decentralized qualifying. Holders who manage more than 10% of the supply are to be disclosed while the project remains centralized to ensure transparency.
Blockchains are considered “mature” if they have basic value, are essentially developed, functional, open, fair, rules-based, and are not centrally controlled or owned (less than a fifth of the supply).
The draft version of the bill also removes requirements linked to the Networkworth threshold. In other words, the market is open to more ordinary investors.
With regard to distributed finance (DEFI), some protocols are non-compulsory and may be exempt from regulations if they do not exercise discretion.
“The modest urgency and bipartisan partnerships are what makes Congress move to unlock US crypto innovation,” said Faryar Shirzad, chief policy officer at Coinbase.
It is also worth noting that the bill defines it without classifying it as security.
As reported by U.Today, major Stablecoin laws have reached a major obstacle in the Senate, with multiple custody Democrats retracting support.
In particular, Senate minority leader Chuck Schumer has concerns about Tether, the flagship stubcoin issuer.
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