The Commodity Futures Trading Commission (CFTC) has shared with Congress its plans to regulate the crypto market with “full oversight capabilities” if the proposed Digital Commodities Consumer Protection Act turns into legislation. The regulator claims to have the best expertise and experience and believes that “Many digital belongings represent commodities.” Meanwhile, SEC Chairman Gary Gensler has insisted that the overwhelming majority of crypto tokens are securities.
CFTC Chairman’s Testimony on Crypto Regulation and the Digital Commodities Consumer Protection Act
The chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, mentioned how his company would regulate the crypto market in a legislative listening to Thursday earlier than the U.S. Senate Committee on Agriculture, Nutrition, and Forestry.
The goal of the listening to was to overview the Digital Commodities Consumer Protection Act (DCCPA) which seeks to empower the CFTC “with unique jurisdiction over the digital commodities spot market.” The bipartisan invoice was launched within the U.S. Senate in August by Senators Debbie Stabenow (D-MI), John Boozman (R-AR), Cory Booker (D-NJ), and John Thune (R-SD).
Behnam advised lawmakers:
Many digital belongings represent commodities … The CFTC’s experience and expertise make it the best regulator for the digital asset commodity market.
He defined that his company “facilitates buyer protections via its principles-based market oversight and disclosure regime geared toward guaranteeing transparency, integrity, and safety of transactions.”
Behnam proceeded to element that since 2014, the CFTC has introduced virtually 60 enforcement digital asset-related instances, together with a latest matter involving a $1.7 billion fraudulent bitcoin scheme.
“With a scarcity of full visibility into the digital commodity asset market, the company’s enforcement program has had to lean totally on suggestions and complaints from the general public to establish fraud and manipulation,” the CFTC chairman described, including:
While we’re engaged in a complete effort throughout the company to police these markets and their members with the instruments at present out there to us, the DCCPA will enable us to apply our full oversight capabilities with out restriction.
Chairman Behnam concluded that “with the extra assets contemplated by the funding mechanism within the DCCPA and the clear mandates for buyer schooling, outreach, and data gathering to be certain that our efforts attain all demographics of the investing group, … the CFTC can transfer swiftly in effectuating this new regime.”
Meanwhile, two different payments have been launched in Congress this yr to make the CFTC the first regulator of the crypto spot markets. The “Responsible Financial Innovation Act” was introduced in June by U.S. Senators Cynthia Lummis (R-WY) and Kristen Gillibrand (D-NY). The different invoice was the “Digital Commodity Exchange Act of 2022,” launched in April by Reps. Ro Khanna (D-CA), Glenn “GT” Thompson (R-PA), Tom Emmer (R-MN), and Darren Soto (D-FL).
Meanwhile, the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has stated repeatedly that the overwhelming majority of crypto tokens are securities and may fall underneath the purview of his company. However, he acknowledged that bitcoin is a commodity. Last week, U.S. Senator Pat Toomey stated Congress ought to step in with crypto steerage and the SEC ought to present way more readability on the way it regulates the crypto sector.
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