House Committee on Financial Services Chairman French Hill and House Committee on Agriculture Chairman G.T. Thompson have published a new op-ed in CoinDesk detailing their approach to market structure legislation for digital assets. They outlined six key principles involving innovation, asset classification, and the establishment of regulatory frameworks.
The principles delineated by the lawmakers begin with promoting innovation by protecting opportunities for creators and ensuring lawful transactions. Moreover, the legislation aims to clarify the classification of digital assets so users understand whether their holdings are securities or non-securities. Additionally, they propose codifying a framework for the issuance of digital assets, ensuring investor protection, and requiring developers to disclose pertinent information.
Regulation of spot market exchanges and intermediaries is another priority, with centralized exchanges required to adhere to financial firm standards. There is also a call for the Commodity Futures Trading Commission (CFTC) to regulate these entities, ensuring customer protection and appropriate order execution.
Best practices for customer asset protection are included, mandating entities to segregate and safeguard customer funds, especially during bankruptcy. The final principle focuses on protecting decentralized projects and the right to self-custody digital assets, with Congress urged to shield these activities from centralized firm regulations.
These efforts are part of ongoing legislative work to promote regulatory clarity and position the United States as a leader in digital finance. In May, the Committees plan to continue discussions on legislation through a second joint hearing.
"We look forward to both Committees continuing our legislative work together to fulfill President Trump’s request to make America the 'crypto capital of the planet,'" the chairmen wrote in the op-ed.
The underlying aim is to modernize the regulatory structure for digital assets, emphasizing investor protection while fostering innovation.