Republican lawmakers from the House Committee on Financial Services and the House Committee on Agriculture have unveiled a new crypto bill. The discussion draft seeks to establish a comprehensive regulatory framework for digital assets.
The draft builds on the Financial Innovation and Technology for the 21st Century Act (FIT21), which passed the House in 2024. It addresses long-standing concerns about market concentration while fostering innovation and consumer protection.
“The term ‘affiliated person’ means a person (including a related person) that, with respect to any digital commodity— ‘‘(A) acquires more than 1 percent or more of the total outstanding units of such digital commodity from a digital commodity issuer,” the bill read.
“This bill makes clear the regulatory regime proposed is going to push against that fact and strongly encourage more small-d ‘democratization’ of the space,” Justin Slaughter is the VP of Regulatory Affairs at Paradigm, stated.
The bill also outlines requirements for affiliated or related persons involved in digital commodities. Before the blockchain system associated with the digital commodity is certified as mature, the affiliated person must hold the commodity for at least 12 months from receiving it.
The transactions are limited to 5% of the holdings or 1% of the average weekly trading volume in any 3-month period. Sales must occur through a digital commodity exchange. Furthermore, the draft mandates that the commodity must be used within the functioning of the blockchain system.
Once the blockchain system is certified as mature, the holding period is reduced to 3 months. In addition, the transaction limit is set to 1% of the total outstanding units or 1% of the average weekly trading volume. These regulations aim to prevent market manipulation and ensure fairness in digital commodity transactions.
New Bill Clarifies SEC and CFTC’s Split Authority Over Crypto
The discussion draft clarifies the jurisdictional divide between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This will allow digital asset projects to develop under well-defined and distinct sets of rules for securities and commodities.
“Digital asset developers will have a pathway to raise funds under the SEC’s jurisdiction. Market participants will have a clear process to register with the CFTC for digital commodity trading,” the draft’s one-pager noted.
Additionally, the draft prioritizes public and permissionless blockchains, explicitly defining them as the focus of the legislation. Private or permissioned networks may not qualify, aligning with the bill’s emphasis on decentralized systems.
The legislation also permits airdrops—broad, equitable token distributions—under specific conditions. That’s not all. The draft sets forth disclosure requirements and details the procedure for registering digital commodity exchanges.
“Regulatory clarity is long overdue in digital asset markets. Today marks the first step in advancing a comprehensive framework that protects consumers, fosters innovation, and closes regulatory gaps in oversight. It will give digital asset developers and users the certainty they need and have asked for,” Chairman Thompson remarked.
Going forward, the digital assets subcommittees of both House committees will meet for a joint hearing on May 6. Notably, the new bill marks a critical step in regulating the crypto industry. Potential amendments are likely before a House vote.
The idea of merging all the current Broccoli projects into one has gained much attention. Even the former CEO of Binance, CZ, has supported this idea.
Previously, Changpeng Zhao (CZ) shared the story of his dog Broccoli, which quickly sparked a wave of meme coins BROCCOLI in the crypto market. However, these projects are fragmented, and many have seen sharp price drops since their launch.
The Bold Idea Of Merging All The Broccoli Meme Coins
A user on the X platform (formerly Twitter) shared his opinion on the current state of the Broccoli projects. In the present context, this user posed a question:
“The odds of any single broccoli hitting 10x are slim to none on its own, but together?” the X user suggested.
He pointed out that the fragmentation of the Broccoli meme coin projects has prevented many investors from participating because people don’t know—or can’t predict—which project will receive liquidity.
There are too many projects being introduced. The popularity of the Broccoli meme coin has brought CZ in for much criticism.
Some Broccoli projects reached a market cap of tens of millions of USD within hours but quickly collapsed due to sell-offs or scams.
Different BROCCOLI Meme Coins on DEXs. Source: DEXSCREENER
Earlier this January, Binance announced and introduced three Broccoli projects, including Broccoli (BROCCOLI), CZ’S DOG (Broccoli), and Broccoli (Broccoli) into Binance Alpha, which have the potential to be listed on the exchange.
“Merging all Broccoli under one new contract is the safest, most promising bet for everyone involved. The odds of any single Broccoli hitting 10x are slim to none on its own, but together? That’s a real possibility,” wrote popular BNB trader Ben Todar.
He noted that each community is too distinct, and picking one as the standout is very difficult. When CZ first shared about his dog Broccoli, many investors asked him for the official CA (contract address).
The former Binance CEO has also expressed interest in this idea. He suggested that combining them would be the best approach in the current chaotic meme coin space.
Most recently, when CZ revealed that he holds a significant amount of BNB, the price of the BROCCOLI meme coin skyrocketed. However, as of the time BeInCrypto wrote this article, many BROCCOLI coins had lost most of their value.
The three CZ’s Dog projects on Binance Alpha have faced the same fate. Data show that more than 40% of Binance Alpha tokens decreased in price after the announcement.
Thus, the merger idea might be an attempt to salvage the situation. A larger community may have the opportunity to vote on the listing of their coin through a new feature introduced by Binance.
However, the timing and potential execution plan remain unclear.
Veer Chetal, one of three men who stole $245 million in Bitcoin last year, just pleaded guilty to fraud and money laundering charges. He agreed to testify against his co-conspirators as part of the deal.
Chetal now faces 19 to 24 years in prison, and his parents may be deported from the US. Although he ran a competent scam, his subsequent actions repeatedly damaged his fortunes.
Last year, Veer Chetal, a teenager from Connecticut, stole $245 million in Bitcoin with the help of two accomplices. Shortly after, kidnappers abducted his parents in an attempt to steal these ill-gotten gains.
Now that Chetal has pleaded guilty to the Bitcoin theft, several relevant court documents have been unsealed. This is making more of the full picture come to light.
It seems that the six kidnappers had nothing to do with the initial theft, either as accomplices or perpetrators. The kidnappers assaulted Chetal’s parents, but the extortion proved unsuccessful.
ZachXBT, the prominent crypto sleuth, initially spearheaded the investigation of Chetal’s Bitcoin theft. He referred to the theft as a “highly sophisticated social engineering attack.”
However, he also noted that poor operational security allowed him to find the culprits’ identities. Now that Chetal is practically guaranteed to see prison time, the sleuth indulged in a little gloating:
“I win it all” – Veer Chetal
>gets all funds seized two weeks after theft >parents kidnapped >loses plea deal >parents lose job and risk being deported to India >now faces many years via RICO charges https://t.co/Kj2I7hq19qpic.twitter.com/dCPjEJLw5G
According to the unsealed documents, Chetal participated in around 50 similar crimes before his big Bitcoin theft, which netted him around $3 million.
His current plea deal will likely include over a decade in prison after he tried to participate in another scam while out on bail. Chetal’s Indian-born parents also face deportation from the US, as his father lost his job following the kidnapping.
During the 2025 edition of the Paris Blockchain Week, BeInCrypto sat down with Alexis Yellow, CEO of Yellow, a crypto project working on an entirely new paradigm based on Satoshi’s initial vision for Bitcoin.
He talks about the upcoming Yellow Tokens, a new smart contract mechanism, and making crypto projects more utility-driven.
Alexis, can you introduce yourself?
I’m Alexis, a software engineer by background. I worked at the European Space Center early in my career, but my crypto journey started quite unexpectedly.
Back in 2013, an old friend from school reached out—he was working at Goldman Sachs and told me about a project that needed help. He said, “There are 12 people in Silicon Valley printing fake money.” That project turned out to be Ripple.
Ripple ended up being our first client, and that experience really helped me grasp the potential of crypto.
Despite the skepticism surrounding the space, I saw real innovation. Ripple’s CTO was a Bitcoin Core contributor, and Vitalik Buterin was involved with the team before Ethereum.
Actually, Buterin was planning to join Ripple. He was especially excited about their consensus mechanism, which inspired me, too.
One thing that always stuck with me was Satoshi’s idea: We need systems where trust isn’t a prerequisite. That idea shaped a lot of my thinking.
Around 2018–2019, I decided to start Yellow. We later merged with a French exchange technology company called OpenWare. Combining my market experience with their tech, we launched Yellow Network.
So, it’s a trading infrastructure designed to let institutions, like Société Générale, trade directly with major players like Binance without needing to trust them.
Trading with exchanges like Binance without trusting them, do you mean trust as a counterparty?
Exactly that’s at the core of Satoshi’s vision. At Yellow, we’re working on a different model of trustlessness using state channels, which represent a new paradigm compared to traditional blockchain systems like Bitcoin or Ethereum.
In those systems, you have tens of thousands of nodes, say, around 30,000, validating each transaction. It’s a powerful model for security, each validator has a financial incentive to be honest, and there’s no way to roll back a confirmed transaction.
The same applies to staking networks. But that structure just doesn’t work for high-frequency trading. You can’t have 30,000 nodes verifying every microsecond trade. It’s simply too slow and inefficient.
For example, some networks try to solve this by reducing the number of validators to 21, but that compromises the level of trust and decentralization. Our approach is fundamentally different. The Lightning Network inspires it, but we’ve taken it in a new direction.
With the Lightning Network, you can move money instantly by opening a state channel. At Yellow Network, we use similar state channels but instead of transferring funds directly, we transfer profit and loss in real time.
For instance, if you buy a Bitcoin for $100,000 and it rises 5%, the $5,000 profit is immediately transferred to your wallet. The trade is settled instantly, peer-to-peer, with cryptographic proof.
To ensure security and fairness, we’ve built a smart contract called ClearSync. If a counterparty refuses to settle, as we saw with the HyperLiquid issue recently, ClearSync can step in and arbitrate the trade.
It verifies the claim and, if valid, ensures the rightful party receives what they’re owed. So, it’s a trustless system that still allows for the speed and flexibility traders need.
1/ $JELLYJELLY on @HyperliquidX and what happens when we rely on trust.
No, it’s peer-to-peer trading. Nothing is faster or more efficient than a direct state channel between two parties. Profit is transferred instantly. That’s the core of this new paradigm: trustless trading, where settlement happens in real time.
Let’s say we’re trading and the connection drops, no problem. If I made a profit, it’s already secured. I might not receive the asset, like Bitcoin, but my profit in dollars is locked in. There’s no need to trust the other party to settle correctly.
Is it effective profit or a claim to profit?
It’s effective profit, denominated in dollars or whatever currency is locked as collateral. Here’s how it works – two parties lock in $20,000 to trade Bitcoin. That amount represents the maximum they’re willing to risk.
If the trade results in a $5,000 profit for one side, that amount is instantly settled, even if the other party refuses to finalize the trade.
If both agree to settle, I send you $100,000, you send me one Bitcoin, and both our collaterals unlock.
Can you switch to stablecoin?
Absolutely. In fact, we’re working with stablecoin issuers to create partnerships and potential investments in Yellow.
Can you give us an idea of the size of the Yellow Group? How many people are there? How many transactions do you process ?
We haven’t officially launched. Before the war in Ukraine, we had a large team of over 100 people. Many have since relocated, mostly to Poland, but we still have staff in Ukraine. Right now, we’re about 50 people globally.
Meanwhile, you can track activity on our analytics site, BundleBear. On Polygon, we’re already the fourth most active app. On Linea, a new protocol by Consensys, we’re number one with over 229,000 users despite not being live yet.
We can see on your website that you are offering your technology so that you can list any token without going through a CEX or a DEX. Is that part of the project?
Exactly. The Yellow Wallet is like a Layer 3; it lets users interact with any chain seamlessly. It now supports cross-chain swaps, like moving tokens from Polygon to Binance Smart Chain, with zero fees. It’s designed to remove friction from cross-chain trading.
Seamless cross-chain swaps, all in your Yellow Wallet!
Swap between BNB, Base, Arbitrum, AVAX, Polygon, OP, Linea, and Scroll with ease.
No, not for the state channels themselves. We don’t monetize trades directly. The Yellow token plays a security role, a “necessary evil,” like ETH or BTC.
Your security deposit gets burned if you behave badly and refuse to settle. It ensures honesty in a peer-to-peer environment. Think of it like a miner losing their reward for trying to cheat.
How do you make money from the usage of your service?
The token economy is the foundation. Just like ETH or BTC derive value from usage and network participation, the Yellow token does too.
It’s needed to place security deposits in the network, and over time, its utility and adoption by industry players will drive its value.
If someone cheats, their token gets burned—creating deflationary pressure and reinforcing good behavior.
Is the token already traded?
Not yet, but we’re planning to launch in the next couple of months. We’ll mint 10 billion Yellow tokens; ideally, that number stays close to that.
If too many tokens get burned, it could indicate issues in the system. It’s a built-in signal to monitor the health and integrity of the network.
Are you going to start it with an airdrop or something of the sort?
No, we’re focused on utility-based distribution. Most tokens will be sold directly in the markets where they’re used. Ethereum didn’t launch with an airdrop. Neither did Bitcoin.
This is a B2B infrastructure project—just like Ethereum and Ripple. While the network is open to everyone, our core users are businesses and institutional players.
That said, the beauty of crypto is that the ecosystem is open. Anyone who believes in the project can get involved and benefit from the network effect, without needing to be a developer or an insider.
Anything important that we left out?
Yes, very few cryptocurrencies are used in the real world today. Bitcoin has proven its value as a store of wealth.
Ethereum demonstrated its utility during the ICO boom. USDT fills a vital gap in places where dollars are hard to access.
We believe Yellow can become the fourth pillar. It’s solving a real need in crypto markets: scalable, trustless, high-frequency trading. And we’re making it open source so the whole industry can benefit.
It’s obvious that Web3 applications will need infrastructure to reach the scale of platforms like Twitter or YouTube.
At Pragma today, @Yellow‘s Louis Bellet shared the secret weapon Ethereum already has to achieve this today.
I think this approach, state channels for speed and smart contracts for resolution, will redefine how trading infrastructure works. It’s ideal for gaming and other fast-paced applications where blockchains never truly fit.
Blockchain isn’t always the answer, especially if you’re using 30,000 nodes to validate a game move. That’s just not efficient.
With Yellow, the trading side is handled through cryptographic state channels not full decentralization. But if something goes wrong, we still fall back to a smart contract to arbitrate. That’s the balance we’re bringing.
Also, we’re working on a new ERC standard for this. In the next 3–4 years, I expect that 10–20% of new crypto projects will adopt this architecture.
Overall, We’re not just building a product, we’re introducing a new philosophy for how decentralized systems can operate more efficiently.
1/ $JELLYJELLY on 
