The newly drafted bill could reshape the US crypto landscape by requiring crypto project members to disclose crypto token holdings above 1% of total supply.
Presented by House Republicans on May 5, 2025,“Digital Asset Market Structure Discussion Draft”, is ambitious to foster wider market participation to reshape the crypto landscape by reducing the influence of large firms, introducing significant regulatory changes that could help democratize the crypto space and address concerns about centralized power in the industry.
The draft bill is a revision of the FinancCial Innovation and Technology for the 21st Century Act (FIT21) and comes under the leadership of two key House committee chairs, Glenn Thompson and French Hill.
Speaking to Coin Telegraph, Justin Slaughter, Vice President of Regulatory Affairs at Paradigm said that the new proposal represents a “meaningful rewrite” of FIT21, signaling an intent to create a more balanced and inclusive crypto market.
Possibly the most notable aspect of the new draft is the provision that requires project members to disclose their holdings of crypto tokens if they own more than 1% of the total supply, down from the 5% threshold in the original FIT21 bill, a move aimed at curbing the influence of large crypto firms and enabling greater participation from smaller players.
However, the draft bill already faces opposition, with a House Financial Services Committee Ranking Member Maxine Waters expressing her intention to block a Republican-led hearing on the bill, citing procedural disagreements.