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On May 5, the U.S. House Committee on Financial Services announced a preliminary version of a bill designed to reshape the nation’s digital asset landscape. Spearheaded by Committee Chairman French Hill, alongside Agriculture Committee Chair G.T. Thompson and Subcommittee Chairs Bryan Steil and Dusty Johnson, the draft legislation seeks to establish a clear regulatory path for digital assets while reinforcing the U.S.’s role as a global leader in financial innovation. The proposal precedes a joint subcommittee hearing set for May 6 to explore digital asset policy more deeply.
Chairman Hill emphasized that the proposal continues bipartisan efforts from the prior Congress, stating, “During the 118th Congress, we laid significant bipartisan, bicameral groundwork to develop a sound regulatory framework for digital assets. This draft builds on that progress by offering regulatory clarity, protecting consumers, and preserving the integrity of U.S. digital asset markets.” Subcommittee Chair Steil echoed the sentiment, characterizing the legislation as essential for global leadership:
“The digital asset sector is entering its golden era, and the House is stepping up. This draft ensures the U.S. remains a powerhouse in financial innovation and global competition, while also shielding consumers from potential abuse.”
Crypto Industry Responds Quickly to Proposed U.S. Legislation Overhaul
The crypto sector was quick to react following the unveiling of the new draft bill, with key industry figures analyzing its potential impact on the regulatory landscape. Matthew Sigel, Head of Digital Assets Research at Vaneck, shared his take on social platform X, calling the draft “a major upgrade from FIT21.” He highlighted that the proposal removes traditional financial barriers for retail investors, such as income and net worth minimums, and eliminates the need for accredited investor status and suitability assessments.
Sigel further emphasized that the bill introduces a new decentralization standard, mandating transparency for any individual or entity holding more than 10% of a project’s supply during its centralized phase while ensuring no single party retains unilateral control. Under the draft, decentralized finance (DeFi) protocols that are non-custodial and do not make discretionary decisions on behalf of users would be exempt from certain regulatory obligations.
Additionally, the legislation outlines a definition for stablecoins that does not classify them as securities. It also offers an optional early registration framework and proposes collaborative rulemaking between the SEC and CFTC. Sigel concluded the proposal is “a strong first step.”
Justin Slaughter, Paradigm’s Vice President of Regulatory Affairs, offered a measured endorsement, calling the draft “an incremental but meaningful revision of FIT21.” He noted that it refines the oversight mechanisms and introduces a reworked process for acknowledging when a project achieves decentralization.
Overall, this bill again would make the CFTC the dominant crypto regulator, but still give the SEC jurisdiction until a network establishes decentralization.
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