US Senators Introduce Bill to Give CFTC Exclusive Jurisdiction Over Digital Commodities Spot Market – Regulation Bitcoin News

U.S. senators have introduced the “Digital Commodities Consumer Protection Act of 2022” to empower the Commodity Futures Trading Commission (CFTC) “with exclusive jurisdiction over the digital commodities spot market.”

Digital Commodities Consumer Protection Act

U.S. Senators Debbie Stabenow (D-MI), John Boozman (R-AR), Cory Booker (D-NJ), and John Thune (R-SD) introduced Wednesday the “Digital Commodities Consumer Protection Act of 2022.”

The bipartisan bill aims to give the Commodity Futures Trading Commission (CFTC) “new tools and authorities to regulate digital commodities,” according to the announcement of the bill by the U.S. Senate Committee on Agriculture, Nutrition, and Forestry.

Senator Stabenow said:

One in five Americans have used or traded digital assets — but these markets lack the transparency and accountability that they expect from our financial system. Too often, this puts Americans’ hard-earned money at risk.

“That’s why we are closing regulatory gaps and requiring that these markets operate under straightforward rules that protect customers and keep our financial system safe,” she added.

The overview of the legislation published by the committee states that the bill “closes regulatory gaps by requiring all digital commodity platforms — including trading facilities, brokers, dealers, and custodians — to register with the CFTC.” It also “authorizes the CFTC to impose user fees on digital commodity platforms to fully fund its oversight of the digital commodity market.” In addition, the bill “recognizes that other financial agencies have a role in regulating digital assets that are not commodities, but function more like securities or forms of payment.”

Senator Boozman noted:

Our bill will give the CFTC the exclusive authority to regulate the spot digital commodity market. This will ensure more consumer protections, greater market integrity, and better innovation in this space.

“This legislation would provide the CFTC with the necessary visibility into the marketplace to respond to emerging risks and protect consumers, while also providing regulatory certainty to digital commodity platforms,” Senator Thune clarified.

Let us know your thoughts on the Digital Commodities Consumer Protection Act. Please leave your comments below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.