By the end of May, the US House of Representatives will vote on the “cryptocurrency” bill HR 4763. We recall that it was prepared by Republicans and presented in July 2023. At the same time, it was approved by the relevant Committee on Financial Services.

This bill would require the US Commodity Futures Trading Commission (CFTC) to regulate a digital asset as a commodity if it is functional and decentralized. And the US Securities and Exchange Commission (SEC) will regulate a digital asset as a security if it is functional but not decentralized. According to the law, “decentralization” is when no one person has control over the blockchain and does not hold more than 20% of the token issue or voting rights.

The bill will also oblige clients to be accounted for separately from the company (division of their funds), establish limits on annual sales volumes, a period for blocking tokens for insiders, and information disclosure requirements.

Regulation is getting closer.

HR 4763 clearly defines the authority of the CFTC and SEC in the US crypto industry. And, I must say, generally not in favor of the SEC. We have already written many times about the fact that both departments are fighting to expand their powers to regulate the crypto market. In August 2023, the head of the US Commodity Futures Trading Commission, Behnam, called 70% of cryptocurrencies commodities. By clearly limiting the share of the crypto market that SEC head Gensler is ready to give up.