US Senior House Republicans Propose Bill to Give Crypto Asset the Designation of Digital Commodities

Senior House Republicans in the U.S. Congress proposed a draft discussion on offering certain crypto assets the designation of digital commodities.

They have suggested establishing a framework to boost regulatory clarity and will restrict the SEC from refusing certain digital asset trading platforms from registration. The proposed legislation would allow firms to offer “digital commodities and payment stablecoins”.

The framework under the bill would allow certain digital assets to qualify as digital commodities if they were “functional and considered decentralized” and require the SEC to provide a “detailed analysis” of any objections to a classification of a firm as decentralized.

The bill creates a definition of a decentralized network, in which a token could transition from being treated as a security to a commodity, an investment category with lower disclosure requirements.

The proposed legislation also demands the SEC modify its rules to permit broker-dealers to provide custody for digital assets.