Ongoing debates include stablecoin risks and potential changes in taxation policy.
On May 5, 2025, the Financial Services and Agriculture Committees of the U.S. House of Representatives released a draft aimed at enhancing transparency in the regulation of the cryptocurrency market. This draft could form the basis for discussions to clarify regulatory approaches to crypto assets and market transactions.
ContentsCryptocurrency Regulation FrameworkTaxation Regulations Cryptocurrency Regulation Framework
The proposed draft suggests the Securities and Exchange Commission (SEC) should oversee crypto assets considered as investment contracts, while the Commodity Futures Trading Commission (CFTC) would monitor crypto commodities and spot markets. Within this framework, it is proposed that the SEC retains its authority over existing oversight until the proof of decentralization concept is provided.
The draft includes criteria for the decentralization test, used to evaluate brands and projects. It states that a project should not be under unilateral control, and no party should own more than 10% of the token supply. A blockchain is considered “mature” if it is open to users, has transparent rules, and is free from centralized control.
Taxation Regulations
The draft aims to increase individual investors’ access to the asset market by removing income or wealth restrictions. It also supports the registration of crypto exchanges with the CFTC, providing an early registration option, and advocating for joint regulatory efforts between the SEC and CFTC. Separate regulations for the classification of stablecoins are also open for discussion.
Some Senators have increased the existing uncertainty by withdrawing support for the draft, with concerns raised particularly around stablecoin transaction risks. Senator Chuck Schumer expressed worries regarding the timeline for implementing the draft.
Rep. French Hill: “Our draft provides regulatory clarity for the crypto asset ecosystem.”
Rep. Glenn Thompson: “The need for regulatory clarity is greater than ever. This is the first step in a comprehensive framework.”
In the upcoming public session titled “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century,” the draft details will be examined from a broader perspective. This session may facilitate an exchange of ideas concerning the regulatory structure.
The draft also revived debates about the taxation of gains from crypto asset transactions. Industry representatives support suggestions to exclude small-scale transactions from tax coverage and seek changes in this area in the future.
Matthew Sigel: “We must remove the Bitcoin $95,111 gains tax. Tax deductions for every transaction hinder the functionality of money.”
These ongoing regulatory efforts reflect the quest for transparency and clarity in the digital asset sector. The draft is a step toward establishing a more structured framework for market participants.
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