In order to give the Commodity Futures Trading Commission (CFTC) more authority to act as the primary regulator of the cryptocurrency spot markets, three different bills have been introduced in the U.S. this year.
In order to make the Commodity Futures Trading Commission (CFTC) the primary regulator for cryptocurrency spot markets, three bills have already been introduced in Congress this year.
Noting that the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) should be the primary regulators of the cryptocurrency spot markets, The Blockchain Association’s executive director, Kristin Smith, said on Thursday to CNBC:
We now have three different bills — the one this week, the Lummis Gillibrand bill, and also the House bill, the Digital Commodity Exchange Act — that all say the CFTC is the place to go.
The “Digital Commodities Consumer Protection Act of 2022” was introduced by U.S. Senators Debbie Stabenow (D-MI), John Boozman (R-AR), Cory Booker (D-NJ), and John Thune (R-SD) last week. “Our bill will empower the CFTC with exclusive jurisdiction over the digital commodities spot market, which will lead to more safeguards for consumers, market integrity and innovation in the digital commodities space,” Senator Boozman commented.
The “Responsible Financial Innovation Act,” introduced in June by U.S. Senators Cynthia Lummis (R-WY) and Kristen Gillibrand (D-NY), gives the CFTC regulatory control over the spot markets for digital assets. “Digital assets that meet the definition of a commodity, such as bitcoin and ether, which comprise more than half of the market capitalization of digital assets, will be regulated by the CFTC,” the lawmakers said.
The “Digital Commodity Exchange Act of 2022” was the third piece of legislation, and it was introduced in April by Representatives Ro Khanna (D-CA), Glenn “GT” Thompson (R-PA), Tom Emmer (R-MN), and Darren Soto (D-FL). Rep. Khanna said, “Congress must establish a clear process for generating and trading digital commodities that prioritizes consumer protections, transparency, and accountability in order to foster American innovation and tech job growth.
“We are very excited that we have bipartisan, bicameral members of Congress that are wanting to think about and tackle these [crypto regulatory] issues,” Smith described.
Noting that the U.S. Senate Committee on Agriculture, Nutrition, and Forestry has jurisdiction over the CFTC, and Senator Stabenow is the chairwoman of the committee while Senator Boozman is the ranking member, Smith opined:
The fact that we have this level of senator who is thinking about this is incredibly encouraging.