U.S. lawmakers just rolled out a new legislative draft that could reshape how crypto is regulated across the country. The proposal lays the groundwork for clearer oversight by dividing responsibilities between the two key financial regulators — and sets new guidelines for decentralization and public access to digital assets.
Who’s in Charge?
The draft spells out the regulatory split: if a crypto project is still under centralized control (especially if a single entity holds over 10% of its tokens), it would fall under the jurisdiction of the Securities and Exchange Commission (SEC). Once it meets decentralization criteria, regulation shifts to the Commodity Futures Trading Commission (CFTC), which would handle digital commodities and spot markets.
This attempt to define clear boundaries comes after years of regulatory confusion and debate. As Justin Slaughter noted on X:
“Overall, this bill again would make the CFTC the dominant crypto regulator,”
while acknowledging that the SEC still has a role during early stages of a network’s life.
New Definitions for Decentralization
The bill introduces a specific benchmark for decentralization: no single party should be in control, and if someone holds a notable portion of tokens, they must disclose it during the network’s early stages. A protocol is considered “mature” when it’s functional, transparent, open-source, and community-driven.
This would give both developers and regulators a clearer map of when and how a project transitions from a security to a commodity.
Expanded Access for Retail Investors
Perhaps one of the most notable changes in the draft is the removal of wealth and income thresholds. Under the new proposal, anyone — not just accredited investors — could gain exposure to crypto projects. The move is a step toward wider public participation and could reduce the gatekeeping that’s long existed in digital asset investment.
There’s also a path for exchanges to register with the CFTC and an optional early filing process for token issuers. Coordination between the SEC (now led by Paul Atkins) and the CFTC is encouraged to reduce conflicts and streamline compliance.
For decentralized finance platforms that don’t custody user funds or exert control over protocols, exemptions are being considered.
Stablecoins: Still in the Hot Seat
While the draft defines stablecoins without labeling them as securities, separate legislation aimed at regulating them is facing headwinds in the Senate. Several Democratic senators have pulled their support, citing potential risks tied to recent changes in the bill’s language.
Senator Chuck Schumer has voiced concerns about how certain stablecoins operate, particularly pointing at Tether, raising new questions about whether the Senate will reach consensus on stablecoin rules anytime soon.
What Lawmakers Are Saying
Rep. French Hill said the new draft is
“An important step forward for regulatory clarity.”
Rep. Glenn Thompson echoed that sentiment, saying it’s long overdue.
A hearing titled “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century” is scheduled to dive deeper into the draft and gather industry feedback.
Calls for Tax Reform Grow Louder
On a related note, the conversation around taxing everyday crypto use is heating up. With the SEC roundtable coming up, many in the space are pushing for a revamp of capital gains rules.
Kristoph Jeffers posted,
“Now let’s eliminate cap gains tax on Bitcoin so people can use it as currency.”
VanEck’s Matthew Sigel chimed in,
“Agreed. Hard to call it money if every purchase triggers a 1099.”
Sigel highlighted ongoing Senate efforts to pass a “de minimis” exemption through the Lummis-Gillibrand bill, which would allow small crypto purchases to avoid capital gains tax altogether.
Stay tuned — this is shaping up to be a pivotal year for crypto policy in the U.S.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
