House Republicans have introduced the Digital Asset Market Clarity Act, granting the CFTC exclusive authority over digital commodity spot markets, such as Bitcoin.
The legislation also proposes the establishment of a dual registration pathway, allowing crypto firms to register with the CFTC or SEC, based on the digital asset type. However, the SEC will not oversee specific DeFi protocols and non-custodial wallet providers.
Furthermore, the bill clarifies that payment stablecoins are not securities. It also prohibits regulators from requiring custodians to include client assets on their balance sheets.
The proposed legislation is a significant step toward a comprehensive regulatory framework in the United States. It also defines roles for regulatory bodies to prevent a clash of duties and provide clearer guidance for market participants.