If passed, a new crypto bill introduced by John Boozman, a Republican from Arkansas, and Debby Stabenow, a Democrat from Michigan, would give the Commodity Futures Trading Commission (CFTC) complete control over bitcoin and Ethereum, the two largest and most popular digital currencies in the world.
The CFTC would hold the majority of authority.
Both ETH and BTC are defined as commodities in the proposed legislation. Moreover, they account for roughly two-thirds of all activity in the digital currency industry. By granting authority over these two entities to the CFTC, this agency would have a great deal of influence over crypto regulation in the months and years ahead.
At the time of writing, it is unclear which coins would fall under the jurisdiction of the CFTC or the Securities and Exchange Commission (SEC).
In recent times, crypto regulation appears to be a top priority for every member of Congress. Cynthia Lummis of Wyoming and Kristen Gillibrand of New York introduced a new bill not too long ago that will ultimately shape the future of crypto regulation and how bills are worded.
Additionally, Joe Biden issued a crypto executive order a few months ago mandating that all U.S. financial agencies examine and study both the advantages and disadvantages of crypto assets. Additionally, the order may have opened the door to a digital version of the U.S. dollar.
Any online platforms or exchanges that allow investors to trade digital assets would be required to register with the CFTC under the new legislation. Stabenow states that her motivation for writing and introducing the bill is the current lack of transparency in the crypto space. She also asserts that all cryptocurrency companies must be accountable and protect investors.
We are therefore closing regulatory gaps and mandating that these markets operate under simple rules that protect customers and maintain the security of our financial system.
It is much easier for members when they don’t have friends who are everywhere.
Could This Be Possible?
The director of financial regulation and corporate governance at the liberal think tank Center for American Progress, Todd Phillips, expressed enthusiasm for the bill, stating:
It provides a regulatory framework for crypto assets without usurping the authority of other agencies, such as the SEC. It requires the registration and regulation of brokers specifically.