Updated · Nov 16, 2022
CFTC to Police Bitcoin, Ether, per New Senate Bill
Updated · Aug 04, 2022
The senators proposed the Digital Commodities Consumer Protection Act on Wednesday to provide “more safeguards for consumers”.
A bipartisan bill from the leaders of the U.S. Senate Agriculture Committee seeks to hand oversight of the biggest cryptocurrencies to the Commodities Futures Trading Commission (CFTC). It is the latest attempt by Congress to regulate an industry that has undergone turmoil this year.
Senators Debbie Stabenow (D-Mich.) and John Boozman (R-Ark) spearheaded the introduction of the legislation, dubbed the Digital Commodities Consumer Protection Act.
The proposed bill seeks to clarify that bitcoin and ether fall under commodities rather than securities. As such, they are not under the direct oversight of the Securities and Exchange Commission (SEC).
"This fast-growing industry is currently governed largely by a patchwork of regulations at the state level. That simply is not an effective way to protect consumers from fraud," Boozman said in a statement.
What To Expect
If the bill gets the green light, bitcoin and ether will fall under the purview of the CFTC. According to Stabenow, it will “empower the CFTC with exclusive jurisdiction over the digital commodities spot market”.
The regulator currently policies derivatives like interest rate swaps.
As part of the proposal, crypto exchanges and platforms that trade and deal in bitcoin and ether in the U.S must register with the CFTC. There will be various categories for registration, including “digital commodity broker”, and “digital commodity trading facility”.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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