House Moves Forward on Crypto Market Structure Bill After FIT21 Success

House Representatives are finalising a crypto market structure bill, with a draft expected by the end of the month. This bill will build off the previous FIT21 legislation, aiming to shift digital asset regulation from the SEC to the CFTC. Recent congressional hearings have focused on regulatory authority divisions, while related stablecoin legislation awaits further action.

In a notable development in the realm of cryptocurrency regulation, House Representatives are nearing the completion of a crypto market structure bill. This follows recent stablecoin legislation, which has grabbed headlines. Sources indicate that a draft for discussion should emerge by the end of the month, which coincides with President Trump’s timeline for passing both stablecoin and market structure bills by summer’s end.

The new bill is expected to leverage insights from the Financial Innovation and Technology for the 21st Century Act (FIT21), previously passed by the House last Congress. This legislation aimed to elevate the Commodity Futures Trading Commission (CFTC) to the primary regulatory position for digital asset spot markets, taking over authority from the SEC, and its passage was a rare moment of bipartisan agreement. Notably, 71 Democrats supported FIT21, which was heralded as the first digital asset law to clear a Congressional chamber.

Recently, the Digital Assets Subcommittee of the House Financial Services Committee and the House Agriculture Committee conducted hearings focusing on the division of regulatory authority between the SEC and CFTC. These discussions are crucial as lawmakers explore the best approach for overseeing the burgeoning crypto market.

Meanwhile, the STABLE Act in the House and the GENIUS Act in the Senate are both awaiting next steps after passing committee markups. Although these bills share similarities, the GENIUS Act provides state regulators with additional powers concerning stablecoin issuers, which could lead to transformative changes in cryptocurrency regulation.