CFTC Prepares To Strengthen Oversight Of The Cryptocurrency Market – Says Many Digital Assets Are Commodities – Bitcoin News Regulation

The Commodity Futures Trading Commission (CFTC) has shared with Congress its plans to regulate the cryptocurrency market with “full oversight capabilities” if the proposed Digital Commodities Consumer Protection Act becomes law. The regulator says it has the right experience and expertise and believes that “Many digital assets are commodities”. Meanwhile, SEC President Gary Gensler insisted that the vast majority of crypto tokens are stocks.

CFTC president’s testimony on cryptocurrency regulation and digital commodity consumer protection law

Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam discussed how his agency would regulate the cryptocurrency market on Thursday in a legislative hearing before the U.S. Senate Agriculture, Nutrition and Forestry Committee on Thursday. .

The purpose of the hearing was to review the Digital Commodities Consumer Protection Act (DCCPA) which seeks to give the CFTC “exclusive jurisdiction over the spot digital commodity market.” The bipartisan bill was presented to the US Senate in August by Senators Debbie Stabenow (D-MI), John Boozman (R-AR), Cory Booker (D-NJ) and John Thune (R-SD).

Behnam told lawmakers:

Many digital assets are commodities … CFTC’s experience and experience make it the right regulator for the digital asset commodity market.

He explained that his agency “facilitates customer protection through principle-based market supervision and disclosure regime designed to ensure transparency, integrity and security of transactions.”

Behnam went on to detail that since 2014 the CFTC has brought nearly 60 application cases related to digital assets, including a recent issue involving a $ 1.7 billion bitcoin fraudulent scheme.

“With the lack of full visibility in the digital commodity asset market, the agency’s enforcement program had to rely primarily on suggestions and complaints from the public to identify fraud and manipulation,” the CFTC president described, adding:

While we are engaged in a global, agency-wide effort to oversee these markets and their participants with the tools currently available to us, the DCCPA will enable us to apply our comprehensive oversight capabilities without restrictions.

President Behnam concluded that “with the additional resources covered by the funding mechanism in the DCCPA and clear mandates for client education, outreach and information gathering to ensure that our efforts reach all demographics of the investing community. , … the CFTC can move quickly in implementing this new regime ”.

Meanwhile, two more bills have been presented to Congress this year to make the CFTC the leading regulator of cryptocurrency spot markets. The Responsible Financial Innovation Act was introduced in June by US Senators Cynthia Lummis (R-WY) and Kristen Gillibrand (D-NY). The other 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).

Meanwhile, US Securities and Exchange Commission (SEC) chairman Gary Gensler has repeatedly stated that the vast majority of crypto tokens are securities and should fall within the purview of his agency. However, he recognized that bitcoin is a commodity. Last week, US Senator Pat Toomey said Congress should step in with cryptocurrency leadership and the SEC should provide much more clarity on how the cryptocurrency industry regulates.

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Do you think the CFTC should be the main regulator of the cryptocurrency market? Let us know in the comments section below.

Kevin Helms

Austrian economics student Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin’s security, open source systems, network effects, and the intersection of economics and cryptography.

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