In order to make the Commodity Futures Trading Commission (CFTC) the primary regulator for cryptocurrency spot markets, three proposals have already been presented in Congress this year.
Kristin Smith, executive director of the Blockchain Association, told a news publishing house on Thursday that the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) should be the major regulators of the cryptocurrency spot markets.
“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.”
Senators John Boozman, Cory Booker, Debbie Stabenow, and John Thune of the United States of America introduced the “Digital Commodities Consumer Protection Act of 2022” last week. According to Senator Boozman, the bill will give the CFTC exclusive control over the spot market for digital commodities, resulting in stronger consumer protections, market integrity, and innovation in the sector.
The “Responsible Financial Innovation Act,” introduced in June by U.S. Senators Cynthia Lummis and Kristen Gillibrand, gives the CFTC regulatory control over the spot markets for digital assets. The CFTC will be in charge of overseeing digital assets that fit the definition of a commodity, such as bitcoin and ether, which together make up more than half of the market capitalisation for digital assets.
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). According to Khanna, it will support the expansion of tech jobs and American innovation. To make it a reality, Congress must define a precise procedure for developing and trading digital commodities that places a premium on consumer rights, accountability, and openness.