The US senate introduced a new bill to make the Commodity Futures Trading Commission (CFTC) the direct regulator of cryptocurrencies.
As per reports, the bill was proposed by the top-tier Democrat and Republican on the Senate Agriculture Committee. The bill would give the derivatives regulation body exclusive authority over cryptocurrencies like Bitcoin and Ether and other crypto products that might soon become commodities.
The bill requires crypto firms including brokers, custodians and exchanges to register under CFTC. This registration is required for maintaining fair pricing and preventing market manipulation. The registration will make it possible for regulators to avoid conflicts of interest and also make sure there are enough financial resources.
Senate Agriculture Committee Chairwoman Debbie Stabenow and Sen. John Boozman, supporter of the bill asserted that the measure would offer significant regulatory clarity to the crypto industry by letting a single regulatory institution control all the future policies.
Boozman commented, “This fast-growing industry is currently governed largely by a patchwork of regulations at the state level. That simply is not an effective way to protect consumers from fraud”.
The bill joins a growing list of legislation aimed at clarifying the rules around cryptocurrency. The market has recently seen substantial instability and high-profile failures, and lawmakers in both the House and Senate are working on proposals to put guardrails around it.
Debbie Stabenow stated that the bill is not meant to cover the entire cryptocurrency market or weaken the role of the US Securities and Exchange Commission (SEC) in monitoring crypto products and services functioning more like securities.
Stabenow concluded, “We’re not defining what a security is. I have great confidence in Chairman Gensler to be able to use his authorities.”
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