U.S. lawmakers introduce a draft regulatory framework for digital assets, clarifying the responsibilities of the SEC and CFTC.

U.S. lawmakers propose a draft regulatory framework for digital assets

Recently, several important committee chairs of the U.S. House of Representatives jointly released a discussion draft aimed at establishing a comprehensive federal regulatory framework for the U.S. digital asset industry. This draft was co-authored by Republican lawmakers from different states, including the chairs of the Financial Services Committee, the Agriculture Committee, and relevant subcommittees.

The main objective of the draft is to coordinate the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while providing clear legal definitions for key concepts in the blockchain and digital asset markets. The chairman of the Financial Services Committee emphasized that this framework aims to protect consumer rights while maintaining the United States' leadership in the field of digital innovation.

The draft introduces definitions for several core industry concepts, including digital goods, blockchain systems, decentralized governance, approved payment stablecoins, and mature blockchain systems. Notably, the draft explicitly states that distributions conducted through mining, staking, or user rewards are neither classified as securities nor constitute sales.

Lawmakers emphasized the urgency of establishing clear regulatory rules, believing that this would fill the existing regulatory gap and provide the certainty that industry participants have long needed. The draft sets out a registration pathway for digital asset exchanges, brokers, and dealers under CFTC regulation, while maintaining SEC jurisdiction over securities and certain mixed assets.

In addition, the draft also protects the rights of decentralized finance (DeFi) protocols and self-custody wallets. As long as DeFi trading protocols and messaging systems do not hold user funds or exercise discretion, there is no need to comply with traditional financial regulations. At the same time, the draft prohibits relevant departments from imposing restrictions on individuals holding digital assets through self-custody wallets.

To advance the legislative process, relevant committees have scheduled a joint hearing on the theme of "The Future of American Innovation and Digital Assets: A Blueprint for the 21st Century." This will initiate formal legislative discussions and gather opinions from various parties. The draft also includes provisions for the SEC and CFTC to jointly formulate rules, as well as content for conducting research on DeFi, NFTs, and blockchain infrastructure.

Overall, this draft aims to eliminate uncertainty in the regulation of digital assets in the United States by establishing clear legal definitions and regulatory boundaries, while also encouraging the healthy development and effective regulation of the digital asset market.