In 2008, an anonymous person or group of people released only as “Satoshi Nakamoto” released a now-seminal document, Bitcoin-Hvidebook that introduced a peer-to-peer system to the value of exchange without intermediaries.

With this revolutionary concept, the idea of ​​a “digitally asset” was born. Shortly after, developers and entrepreneurs on this concept and developed systems where the value was exchanged not only for its own sake, but for services and digital products.

Over the past decade, innovators have built up permission-free, decentralized networks for computer services, file storage, asset exchanges, cellular coverage, Wi-Fi connection, mapping tools, lending services and more. Because digital assets can be used for services that anyone can offer and anyone can access, use-boats are economic and non-financial-potentially endless.

Despite this promise, these networks have followed criticism. The Biden-Harris administration tried to block this innovative progress through a merciless campaign with litigation and enforcement measures without giving the legislative clarity the digital asset ecosystem and its innovators and users who are so desperately needed.

Securities and Exchange Commission (SEC) failed to clarify how existing securities legislation applies, and – more importantly – does not apply to digital asset transactions. This lack of legislative clarity suffocated the digital activist ecosystem and pushed growth out of the United States for jurisdictions that have established clear rules for the road.

To tackle these failures, Congress began exploring ways to modernize the regulatory structure to accommodate the unique features of digital assets and how they could be used in our financial system. These efforts culminate with a number of bills aimed at clarifying how digital assets could be used in the financial system, which ensured investor protection and promotes innovation.

In the 118th Congress, the House Committees on financial services and agriculture launched a historic joint effort to tackle digital asset regulation. This led to the first review of the Bipartisan Digital Asset Market Structure legislation in a chamber. This collaboration enabled Congress to tackle many years of challenges in the ecosystem and lay the basis for a fit for purpose frames under President Trump’s leadership.

This congress, both Parliament and the Senate, is obliged to create a clear path forward for the digital activist ecosystem. As we move on, it is important that the frame is both balanced and iron -clad for the future. In order to achieve this, we have established principles of digital asset legislation.

Six principles

First, the legislation must promote innovation. We seek to protect the possibilities of innovators to create and use digital assets while ensuring that users can legally trade with each other.

Secondly, the legislation must give clarity for classification of assets. Users of digital assets should clearly understand the nature of their inventory, including whether they qualify as securities or non-security.

Third, the legislation must codify a framework for the issuance of new digital assets. The framework must allow issuers to raise capital through the sale of new digital assets under SEC’s jurisdiction. It should protect retail investors and require developers to reveal relevant information to help users understand the unique features of digital asset networks.

Fourth, the legislation must determine the regulation of spot market exchanges and intermediaries. Centralized, parenting exchanges and intermediaries that facilitate transactions with digital assets that are not security should comply with similar requirements as other financial companies.

Congress should give the Commodity Futures Trading Commission (CFTC) authority to make demands on these entities needed to protect customers, limit conflicts of interest, ensure appropriate performance of customer orders and provide information.

Fifth, the legislation must establish best practice for protection of customer assets. Units registered with SEC or CFTC must be required to separate customer funds and keep them with qualified custodians. Customer funds should also be protected during bankruptcy.

For the sixth and eventually, the legislation must protect innovative decentralized projects and activities. Congress must ensure that decentralized protocols that pose different risks and benefits are not subject to rules designed for centralized custody companies. When protecting decentralized activities, Congress must also protect the individual’s right to self -defense their digital assets.

We look forward to both committees that continue our legislative work together to fulfill President Trump’s request to make America “crypto capital on the planet.” In May, our committee will host our second joint consultation to discuss the market structure for digital asset market structure.

Our goal is to bring much needed legislative clarity to this rapidly developing industry, ensuring that America continues to lead to shaping the future of digital funding.