House Introduces Digital Asset Market Clarity Act to Shift Crypto Oversight

Highlights:

• House lawmakers propose a bill to shift crypto oversight from the SEC to the CFTC for most digital assets.
• The bill defines most crypto tokens as digital commodities based on how they function within blockchain systems.
• The new rules aim to protect users and create clear standards for customer-facing digital asset firms in the US.

House lawmakers introduced a new bill that would shift oversight of most digital assets away from the Securities and Exchange Commission. The bill called the Digital Asset Market Clarity Act of 2025, assigns the Commodity Futures Trading Commission as the lead agency for digital commodities. This move would place cryptocurrencies like Ethereum, Solana, Cardano, XRP, and Dogecoin under the CFTC’s supervision. The bill defines digital assets as digital commodities when they are used to transfer value within blockchain networks.

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The "Market Structure Bill" led by Representative French Hill of the U.S. House Financial Services Committee will begin its markup (deliberation) on June 10.

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The proposal redefines what assets are covered by the term securities under current financial laws.
As a result, the SEC would no longer have authority over most crypto tokens. However, assets that clearly meet the definition of a security or related financial product would remain outside the digital commodity category. It does not clarify how entities such as courts and agencies should label an asset as a security or a digital commodity.

Support for the bill comes from both political parties. Representative Bryan Steil, who chairs the House Financial Services Subcommittee, said the bill supports innovation and protects consumers. It also has three Democratic co-sponsors: Representatives Angie Craig, Ritchie Torres, and Don Davis.

Digital Asset Market Clarity Act Defines New Asset Categories and Standards

The bill also introduces a new classification known as a mature blockchain system. This status applies to networks that meet specific conditions, such as being open source and not controlled by one person or entity. In addition, no single party may own more than 20 percent of the asset’s supply. Although optional, this label gives developers some extra benefits when offering or selling tokens.

However, the mature blockchain system status does not change whether an asset is considered a digital commodity. Projects can qualify as digital commodities without needing to meet the mature blockchain standard. Experts have said that the process to gain this status may take years and provide only limited advantages. 

The bill also outlines compliance rules for firms that interact directly with customers. These include separating company and customer assets, disclosing ownership and project details, and reducing conflicts of interest. These rules aim to create clear practices for customer-facing crypto businesses. Lawmakers believe these steps will make the market safer for users.

Lawmakers Set June Hearing as Crypto Legislation Gains Momentum

The Financial Services Committee will hold a full markup of the bill on June 10. This follows earlier efforts in the 118th Congress, including the FIT21 Act, which passed the House but did not move forward in the Senate. The new bill builds on those efforts and responds to growing calls for better structure in the digital asset space. Lawmakers have also pushed forward the GENIUS Act, which awaits a Senate vote.

French Hill, who introduced the bill, said the new proposal supports other initiatives that want to bring clear rules for the digital asset markets. Representative Ritchie Torres said the act gives clear rules that protect investors and support market growth. The bill reflects bipartisan momentum to build a legal framework for digital assets in the United States.

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