The House Financial Services and Agriculture Committee leaders published a discussion draft outlining a federal crypto framework to regulate the industry in the US on May 5.
House Financial Services Chairman French Hill (R-AR), Agriculture Committee Chairman Glenn “G.T.” Thompson (R-PA), Financial Services Subcommittee Chair on Digital Assets Bryan Steil (R-WI), and Agriculture Subcommittee Chair on Commodity Markets Dusty Johnson (R-SD) released the draft legislation.
The lawmakers emphasized the bill’s role in coordinating regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) while introducing legal definitions for key terms in blockchain and crypto markets.
Chairman Hill stated:
“The discussion draft builds upon the bipartisan, bicameral progress made in the 118th Congress and offers a durable framework to protect consumers while maintaining the United States’ leadership in digital innovation.”
He added that the committee intends to incorporate public feedback and work with the President Donald Trump administration to deliver a final bill for enactment.
Classifications for digital assets
The legislation introduces definitions for core industry concepts, including digital commodity, blockchain system, decentralized governance, permitted payment stablecoin, and mature blockchain system.
Additionally, it clarifies that distributions through mining, staking, or user rewards, termed “end user distributions,” are neither securities nor sales under existing laws.
Chairman Thompson emphasized the urgency of legislative clarity, noting that the proposed framework will close regulatory gaps and give developers and users the certainty they have long requested.
The draft sets registration pathways for digital commodity exchanges, brokers, and dealers under the CFTC while allowing the SEC to retain jurisdiction over securities and certain hybrid assets. Entities performing custody functions, trading facilitation, or interfacing with customers must follow newly defined registration and disclosure procedures.
Subcommittee Chair Steil said:
“This is the beginning of the golden age of digital assets, and the House is leading the way.”
Johnson echoed this view, stating the US must offer a commonsense regulatory regime to remain the global hub for crypto investment and innovation.
The draft preserves protections for DeFi protocols and self-custody. It excludes DeFi trading protocols and messaging systems from traditional financial regulations, provided they do not custody or exercise discretion over user funds.
The bill also prohibits the Treasury or FinCEN from issuing rules restricting individuals’ ability to self-custody crypto through wallets.
Kickstarting the legislative process
The committees scheduled a joint hearing for May 6, titled “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century,” to begin formal legislative discussions and gather stakeholder input.
The draft includes provisions for joint rulemaking by the SEC and CFTC, alongside studies on DeFi, non-fungible tokens (NFTs), and blockchain infrastructure through expanded innovation offices at federal agencies.
By establishing legal definitions and clear jurisdictional lines, the proposed bill seeks to end crypto regulation uncertainty in the US while encouraging responsible development and oversight of digital asset markets.
