FIT21 divides digital assets into three categories: digital commodities (regulated by the CFTC), restricted digital assets (regulated by the SEC), and permitted stablecoins. Classification depends on factors such as the level of decentralization and functionality of the blockchain, how the asset is acquired, and who holds the asset. While the bill is a thoughtful approach to bridging the gap between traditional finance and crypto, it could be improved by expressly discarding the Howey and Reves tests for digital asset categorization to prevent SEC jurisdiction backdoors.