3 Bills Introduced in US to Make CFTC Primary Regulator of Crypto Spot Markets
Three different bills have been introduced in the U.S. this year to empower the Commodity Futures Trading Commission (CFTC) to be the primary regulator of the crypto spot markets. Lawmakers Want CFTC to Be Primary Regula...
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Three different bills have been introduced in the U.S. this year to empower the Commodity Futures Trading Commission (CFTC) to be the primary regulator of the crypto spot markets.
Lawmakers Want CFTC to Be Primary Regulator of Crypto Spot Markets
Three bills have been introduced in Congress so far this year to make the Commodity Futures Trading Commission (CFTC) the primary regulator for crypto spot markets.
Noting that there has been a longtime debate as to whether the Securities and Exchange Commission (SEC) or the CFTC should be the primary regulator of the crypto spot markets, Kristin Smith, executive director of the Blockchain Association, told CNBC Thursday:
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.
In June, U.S. Senators Cynthia Lummis (R-WY) and Kristen Gillibrand (D-NY) introduced the “Responsible Financial Innovation Act,” which assigns regulatory authority over digital asset spot markets to the CFTC. The lawmakers explained: “Digital assets that meet the definition of a commodity, such as bitcoin and ether, which comprise more than half of digital asset market capitalization, will be regulated by the CFTC.”
The third bill was the “Digital Commodity Exchange Act of 2022,” introduced in April by Reps. Ro Khanna (D-CA), Glenn “GT” Thompson (R-PA), Tom Emmer (R-MN), and Darren Soto (D-FL). “To foster American innovation and tech job growth, Congress must establish a clear process for creating and trading digital commodities that prioritizes consumer protections, transparency, and accountability,” Rep. Khanna detailed.
“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.
Do you think the CFTC or the SEC should be the primary regulator of the crypto spot markets? Let us know in the comments section below.
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