House Republicans introduced the “Digital Asset Market Structure Discussion Draft” on May 5, aiming to reduce the dominance of large crypto firms and increase market participation, as per Paradigm executive. The draft, led by committee chairs Glenn Thompson and French Hill, is seen as a significant rewrite of the Financial Innovation and Technology for the 21st Century Act. One notable change is the definition of an affiliated person owning more than 1% of a digital commodity, down from 5%, to curb big crypto firms’ influence. The draft also defines a “mature blockchain system” and assigns the SEC to regulate crypto networks until they are decentralized. It exempts decentralized finance trading protocols from registration as brokers or dealers. Digital commodities are referred to as “investment contract assets,” distinguishing them from traditional assets under the Howey test. The draft aims to provide a clear regulatory framework for raising funds and registering digital commodities with the CFTC. The House committee believes crypto presents an opportunity for innovation and US financial infrastructure modernization, criticizing the previous administration’s regulatory approach. However, the draft faces opposition from Democratic members, with plans to block discussions on digital assets.