Republican legislators from the House Financial Services Committee and House Agriculture Committee introduced a new cryptocurrency bill aimed at establishing a thorough regulatory framework for digital assets. This draft expands on the Financial Innovation and Technology for the 21st Century Act, addressing concerns about market dominance and promoting innovation and consumer safeguarding.

The 212-page discussion draft, revealed by Chairmen French Hill, G.T. Thompson, Bryan Steil, and Dusty Johnson on May 5, includes provisions to diminish the control of major crypto firms by redefining the threshold for an 'affiliated person' from 5% to 1%. The intention is to encourage broader market involvement and lessen the dominance of large companies in the cryptocurrency space.

The bill also specifies requirements for affiliated persons dealing with digital commodities, enforcing a holding period and transaction limits to prevent market manipulation. It defines the jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to offer clarity for digital asset projects developing under distinct regulatory frameworks for securities and commodities.

Moreover, the legislation prioritizes public and permissionless blockchains, excludes private networks, permits airdrops under specific conditions, establishes disclosure requirements, outlines the registration process for digital commodity exchanges, and emphasizes regulatory clarity and consumer protection. The move towards regulating the crypto industry aligns with the broader goal of setting global standards for digital asset markets to ensure stability and trustworthiness.