U.S. House Passes Crypto Market Structure Legislation, Moves on to Stablecoin Vote.

July 17, 2025 – Washington, D.C.

In a landmark step for the digital asset industry, the U.S. House of Representatives has officially passed comprehensive crypto market structure legislation, providing long-awaited regulatory clarity for digital assets and blockchain platforms. The bill now heads to the Senate, while lawmakers prepare for a separate vote on stablecoin regulations in the coming days.

Defining a New Framework for Crypto

The bipartisan legislation, dubbed the Digital Asset Market Structure Modernization Act, sets out rules on how cryptocurrencies are classified — distinguishing between digital commodities, which fall under the Commodity Futures Trading Commission (CFTC), and digital securities, which are overseen by the Securities and Exchange Commission (SEC).

The bill aims to eliminate regulatory ambiguity, a major obstacle for startups and institutional players alike. It outlines processes for token issuance, secondary market trading, and compliance requirements for centralized and decentralized platforms.

“This is a critical step toward bringing digital assets into the regulatory fold without stifling innovation,” said House Financial Services Committee Chair Rep. Patrick McHenry (R-NC). “We now have a path for American companies to build responsibly without fear of shifting goalposts.”

Strong Bipartisan Support, but Not Without Debate

The bill passed with strong bipartisan support — a sign of increasing consensus in Congress that the U.S. must provide a competitive regulatory environment as global jurisdictions race ahead.

However, not all lawmakers were aligned. Some Democrats voiced concern over perceived leniency toward crypto exchanges and the bill’s impact on investor protections. Progressives pushed for greater oversight over DeFi protocols and stricter anti-money laundering (AML) compliance.

Still, industry leaders hailed the vote as a turning point.

“This is the clearest signal yet that U.S. lawmakers are finally treating crypto like the trillion-dollar sector it is,” said Kristin Smith, CEO of the Blockchain Association. “We applaud this progress and encourage the Senate to act swiftly.”

Next Up: Stablecoin Legislation

With the market structure bill now out of the House, lawmakers are shifting focus to a stablecoin regulatory framework, which is expected to undergo debate and a vote later this week.

That legislation would introduce licensing requirements for issuers, ensure full 1:1 asset backing for fiat-pegged tokens, and give the Federal Reserve oversight of systemic stablecoin providers. Industry participants are watching closely, especially as U.S. banks, fintechs, and crypto-native issuers vie to launch or expand stablecoin products.

“Stablecoins are core infrastructure for the future of payments,” said Rep. Maxine Waters (D-CA), the committee’s ranking member. “But they must be safe, transparent, and subject to federal guardrails.”

Market Reacts Positively

Crypto markets responded positively to the House vote, with Bitcoin (BTC) briefly pushing above $117,000 and Ethereum (ETH) gaining 3% on the day. Exchange tokens and U.S.-based stablecoin issuers also saw strong momentum amid the perceived regulatory tailwind.

While uncertainty remains in the Senate, industry voices say the momentum is undeniable.

“For years we’ve asked for clear rules of the road,” said a policy executive at a major crypto exchange. “Today, we’re finally seeing them materialize.”