U.S. senators want CFTC authority over crypto regulation
A United States Senate committee intends to introduce a measure that would bring digital assets such as Bitcoin (BTC) and Ethereum (ETH) under the authority of a commodities regulator. In contrast, financial management across the globe seeks possibilities to regulate the cryptocurrency industry.
According to an August 3 story in The Wall Street Journal, the plan prepared by Senate Agriculture Committee Chair Debbie Stabenow (D-Michigan) and Arkansas Senator John Boozman (R-Arkansas) would grant the Commodity Futures Trading Commission (CFTC) regulatory power over spot markets for the newly designated “digital commodities.” Notably, the CTFC now only regulates derivatives such as swaps and futures, not commodities.
Advantages of CTFC regulating crypto
Adding crypto to an agency’s mission would increase its financing, influence, and employment opportunities for former government employees. Kiernan adds that politicians who serve on commissions that oversee such agencies would get more lobbyists and political contributions.
In terms of benefits for the cryptocurrency business, crypto trader and analyst Josh Rager tweeted that the measure will be “bullish for crypto, particularly with Ether being classified as a commodity.”
In the meantime, this bill would be the newest addition to a slew of bills meant to define jurisdiction over the novel assets class, including the one proposed in June by Senators Cynthia Lummis and Kirsten Gillibrand, which seeks to clarify various aspects of crypto regulations and correctly classify digital assets.
Other crypto-friendly legislation in the United States
Late in July, Senators Patrick Toomey of Pennsylvania and Kyrsten Sinema of Arizona introduced a measure prohibiting Americans from reporting crypto transactions generating less than $50.
Chris Sununu, the governor of New Hampshire, signed a measure at the end of June that exempts the creator, seller, and facilitator of the exchange of an open blockchain token from some securities regulations.
Finbold noted that around the same time in June, Louisiana Governor John Bel Edwards adopted a measure enabling financial institutions in the state to hold Bitcoin and other digital assets for consumers.