U.S. House Introduces Amendment to 'Cryptocurrency Market Structure Act'..."Clarifying Regulations"

The United States House Republicans have officially introduced an amendment to the 'Cryptocurrency Market Structure Act.'

According to CoinDesk on the 29th (local time), the House Republicans proposed an amendment to the '21st Century Financial Innovation and Technology Act (FIT21 · Cryptocurrency Market Structure Act)' on this day. Previously, the House first introduced the Cryptocurrency Market Structure Act last year. Dusty Johnson, the Republican Representative for South Dakota in the House, explained the background of the bill’s introduction, stating, "America must become a global leader in the digital asset market," adding, "We cannot do that without establishing a clear regulatory framework."

This 236-page bill more clearly defines the scope of oversight and regulatory jurisdiction for the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). First, the Cryptocurrency Market Structure Act newly grants the CFTC exclusive regulatory authority over the digital commodity spot market. The bill also covers a framework allowing cryptocurrency platforms to register separately with the SEC and the CFTC. CoinDesk explained, "The registering authority depends on whether the platform trades digital asset commodities, securities like Bitcoin, or both."

The bill exempts DeFi operation and wallet service providers from the SEC’s oversight authority. In addition, cryptocurrency platforms are defined as financial institutions per the Bank Secrecy Act. The bill also stipulates that the CFTC will regulate digital asset custodians. CoinDesk noted, "(The bill) is likely to become a starting point for prolonged negotiations between Republicans and Democrats in the House," adding, "There is still discussion in Congress as to whether to integrate the Stablecoin Act and the Market Structure Act into a single bill."