The US Senate committee has released the draft of the cryptocurrency market structure bill that, if passed, could lead to redefining crypto regulation across the region.
If the bill passes, it could result in major changes in the treatment of regulated assets, including Bitcoin, Ethereum, and stablecoins, in the US market. The draft intends to provide clarifications in relation to the regulatory grey area that has caused substantial issues to investors and institutions for a long time now.
Redefining the US crypto market
The US crypto market structure bill aims to classify which agencies manage specific segments of the crypto ecosystem. Not having clear distinctions between securities and commodities in digital assets has led to confusion for many years, limiting advancement while also discouraging institutional participation. Currently, lawmakers across the US are looking to change this by introducing clearer regulation that applies to the crypto market.
Expected to pass by the end of 2025, the bill is set to pose as a turning point for industry participants, aligning crypto policy with financial standards. Additionally, the initiative underlines Washington’s recognition that digital assets are not a passing trend and require a structured framework that facilitates innovation and safeguards customers.
Furthermore, the timing of the crypto market structure bill coincides with other similar moves coming from global powers. For example, from the EU to Japan, countries are working on creating clear crypto frameworks or have already done so. When it comes to the US, the country has faced difficulties due to fragmentation in oversight, divided between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). With this bill, the US intends to provide transparent boundaries.
The proposed structure will see cryptocurrencies that operate on decentralised networks being regulated by the CFTC, while tokens linked to specific entities or projects falling under SEC jurisdiction. By implementing this division, regulators aim to offer clarity for businesses developing on blockchain networks.
At the same time, the legislation delivers a tiered regulatory approach, aimed at describing assets according to decentralisation, function, and overall market behaviour. Also, it identifies three main policy objectives, including the protection of investors, maintaining the integrity of the market, and supporting innovation. When it comes to exchanges and brokers, the bill requires them to register with appropriate regulatory authorities, implement anti-fraud frameworks, and comply with the standard of disclosure relative to traditional markets.
For stablecoins, the legislation discusses oversight under federal agencies, which could address the risk of the digital assets not being able to maintain proper reserves and disclosures.
