A group of Republicans have proposed a new bill to regulate the crypto market
Date: 2025-05-06 Author: Oliver Abernathy Categories: IN WORLD
The initiative is an updated version of the old Financial Innovation and Technology for the 21st Century Act (FIT21), which expands the powers of US regulators in the field of cryptocurrencies.
The document proposes that any person who owns more than 1% of the digital assets issued by a company can be recognized as an affiliate, as opposed to 5% in the original FIT21 draft. Justin Slaughter, vice president of regulatory affairs at Paradigm, emphasized that this innovation helps to reduce the influence of large players on the market, which, in turn, should lead to its democratization.
The bill introduces the definition of a “blockchain system” as an ecosystem where digital assets are not subject to the control of any individual or group. At the same time, the responsibility for regulating cryptocurrency platforms falls on the US Securities and Exchange Commission (SEC) until the projects become sufficiently decentralized. According to the document, decentralized financial protocols are platforms that allow users to conduct financial transactions without the participation of intermediaries, and such services are exempt from the need to register as brokers or dealers of digital assets.
In addition, cryptocurrency companies will be able to raise funds under the supervision of the SEC, as well as register their products as digital goods with the US Commodity Futures Trading Commission (CFTC). Joint rules of the CFTC and SEC will determine how and when crypto assets can be withdrawn from circulation if they no longer meet legal requirements.
In April, the House Financial Services Committee already passed a bill that introduces mandatory transparency for stablecoins and prohibits government agencies from participating in projects that plan to issue new stablecoins.
