US House Unveils Foundational Digital Asset Market Structure Bill

In a pivotal move for the digital asset sector, the United States House of Representatives is poised to unveil an updated version of a foundational legislative framework aimed at regulating the burgeoning cryptocurrency market. This anticipated introduction signals a concerted effort by lawmakers to establish clear guidelines for an industry now valued at over $3.4 trillion, according to data from CoinMarketCap. The proactive steps by Congress suggest a growing recognition of the importance of digital assets within the American financial landscape.

Advancing Digital Asset Legislation in the House

The refreshed legislative text for digital asset market structure is expected to be formally introduced this week during a pro forma session of Congress. While these sessions are typically ceremonial and occur during recesses, they serve as a procedural mechanism for submitting documents for consideration. This updated bill builds upon an initial legislative initiative put forth in early May by prominent Republican figures:

• Patrick McHenry (Chairman of the House Financial Services Committee)
• Glenn “GT” Thompson (Chairman of the House Agriculture Committee)
• French Hill (Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion)
• Dusty Johnson (Chairman of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development)

This collective effort underscores a bipartisan push, despite initial Republican leadership, to craft comprehensive regulation for the evolving digital economy.

Congressman French Hill has expressed strong optimism regarding the future of digital assets under the proposed legislation. During a recent conference in Las Vegas, he asserted that the passage of both the market structure bill and related stablecoin legislation would usher in a “golden age of digital assets” in the United States, indicating a belief in the transformative potential of clear regulatory pathways.

Parallel Legislative Efforts and Industry Outlook

Beyond the upcoming bill introduction, the House Financial Services Committee is scheduled to hold a hearing on June 4. Titled “American Innovation and the Future of Digital Assets: From Blueprint to a Functional Framework,” this session will further explore the intricacies of digital asset regulation, aiming to refine the legislative approach.

Concurrently, the Senate is advancing discussions on a bipartisan stablecoin bill, known as the GENIUS Act. The aim is to finalize this legislation before the August congressional recess. This move is seen as critical given the role stablecoins play in the broader digital asset ecosystem.

Industry leaders are closely monitoring these developments. Paul Grewal, Chief Legal Officer at Coinbase, conveyed a cautious optimism regarding the legislative timeline. He expressed confidence that stablecoin legislation could be enacted promptly, potentially before the August recess. While acknowledging the complexity of broader market structure reforms, Grewal suggested a more realistic timeframe for their completion might be towards the end of the year. This legislative momentum, particularly the Senate’s demonstrated support for the GENIUS Act, has led some experts, including Bitwise Chief Investment Officer Matt Hougan, to anticipate sustained, multi-year growth for the cryptocurrency market.