Republicans in the US House of Representatives have just introduced the "Digital Asset Market Structure Discussion Draft," which aims to reduce the dominance of large cryptocurrency firms and encourage broader market participation.
Led by House Agriculture and Financial Services Committee chairmen Glenn Thompson and French Hill, this discussion draft offers an "incremental, albeit meaningful, rewrite" of the Financial Innovation and Technology for the 21st Century Act (FIT21), as Paradigm's vice president of regulatory affairs Justin Slaughter notes in a May 5 X post.
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A key change to FIT21 is the definition of an affiliated person, which is now considered anyone who owns more than 1% of a digital product issued by a project, up from the previous threshold of 5%.
Slaughter suggests this adjustment could reduce the influence of large cryptocurrency companies and encourage greater participation in the cryptocurrency market.