A group of Republicans introduced a bill on cryptocurrencies, which is designed to reduce the dominance of large cryptocurrencies and attract different participants to the digital assets market.

The “Project to discuss the structure of the digital assets market” was nominated by the chairman of the Pennsylvania Committee on Agriculture Glenn Thompson and a member of the House of Representatives from Arkansas French Hill. The Vice President of Paradigm on the regulation of Justin Slaughter noted that the initiative is a processed bill “On financial innovations and technologies for the 21st century” (FIT21), which expands the powers of American regulators in the field of cryptocurrencies.

According to the new bill, any user who owns more than 1% of digital assets released by the company, compared with 5% in the Fit21 bill, can be considered an affiliated person. According to Slater, this may limit the influence of large companies on cryptocurrency and contribute to its democratization. The bill defines the “blockchain system” as an ecosystem, which, along with its digital asset, is not under the control of a person or group of persons.

The main body regulating the activities of cryptocurrency ecosystems will be the US Securities and Exchange Commission (SEC), until these projects become quite decentralized. The bill explains that decentralized financial protocols are services that allow users to independently conduct financial transactions. The protocols corresponding to this criterion are exempted from registration as brokers or dealers of digital assets.

Crypto companies will have the opportunity to attract funds under SEC supervision, and there will also be clear requirements for registering products as digital goods in the US commercial futures (CFTC) commissions. CFTC and SEC should develop joint rules related to the divisting of crypto assets if the registered digital assets no longer comply with legal norms.

In April, the Committee for Financial Services of the House of Representatives of the US Congress adopted a bill on the transparency of stablecoins, which prohibits the US administration to take part in crypto projects involving the launch of stablecoins.