CFTC Prepares to Step up Oversight of Crypto Market — Says Many Digital Assets Are Commodities

The Commodity Futures Trading Commission (CFTC) has shared with Congress its plans to modulate the crypto marketplace with “full oversight capabilities” if the projected Digital Commodities Consumer Protection Act becomes law. The regulator claims to person the close acquisition and expertise and believes that “Many integer assets represent commodities.” Meanwhile, SEC Chairman Gary Gensler has insisted that the immense bulk of crypto tokens are securities.

CFTC Chairman’s Testimony connected Crypto Regulation and the Digital Commodities Consumer Protection Act

The president of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, discussed however his bureau would modulate the crypto marketplace successful a legislative proceeding Thursday earlier the U.S. Senate Committee connected Agriculture, Nutrition, and Forestry.

The intent of the proceeding was to reappraisal the Digital Commodities Consumer Protection Act (DCCPA) which seeks to empower the CFTC “with exclusive jurisdiction implicit the integer commodities spot market.” The bipartisan measure was introduced successful the U.S. Senate successful August by Senators Debbie Stabenow (D-MI), John Boozman (R-AR), Cory Booker (D-NJ), and John Thune (R-SD).

Behnam told lawmakers:

Many integer assets represent commodities … The CFTC’s expertise and acquisition marque it the close regulator for the integer plus commodity market.

He explained that his bureau “facilitates lawsuit protections done its principles-based marketplace oversight and disclosure authorities aimed astatine ensuring transparency, integrity, and information of transactions.”

Behnam proceeded to item that since 2014, the CFTC has brought astir 60 enforcement integer asset-related cases, including a caller substance involving a $1.7 cardinal fraudulent bitcoin scheme.

“With a deficiency of afloat visibility into the integer commodity plus market, the agency’s enforcement programme has had to thin chiefly connected tips and complaints from the nationalist to place fraud and manipulation,” the CFTC president described, adding:

While we are engaged successful a broad effort crossed the bureau to constabulary these markets and their participants with the tools presently disposable to us, the DCCPA volition let america to use our afloat oversight capabilities without restriction.

Chairman Behnam concluded that “with the further resources contemplated by the backing mechanics successful the DCCPA and the wide mandates for lawsuit education, outreach, and accusation gathering to guarantee that our efforts scope each demographics of the investing community, … the CFTC tin determination swiftly successful effectuating this caller regime.”

Meanwhile, two different bills person been introduced successful Congress this twelvemonth to marque the CFTC the superior regulator of the crypto spot markets. The “Responsible Financial Innovation Act” was introduced successful June by U.S. Senators Cynthia Lummis (R-WY) and Kristen Gillibrand (D-NY). The different measure was the “Digital Commodity Exchange Act of 2022,” introduced successful April by Reps. Ro Khanna (D-CA), Glenn “GT” Thompson (R-PA), Tom Emmer (R-MN), and Darren Soto (D-FL).

Meanwhile, the president of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has said repeatedly that the immense bulk of crypto tokens are securities and should autumn nether the purview of his agency. However, helium acknowledged that bitcoin is simply a commodity. Last week, U.S. Senator Pat Toomey said Congress should measurement in with crypto guidance and the SEC should supply overmuch much clarity connected however it regulates the crypto sector.

Do you deliberation the CFTC should beryllium the superior regulator of the crypto market? Let america cognize successful the comments conception below.