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

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 regulate the crypto market with “full oversight capabilities” if the proposed Digital Commodities Consumer Protection Act becomes law. The regulator claims to have the right experience and expertise and believes that “Many digital assets constitute commodities.” Meanwhile, SEC Chairman Gary Gensler has insisted that the vast 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, discussed how his agency would regulate the crypto market in a legislative hearing Thursday before the U.S. Senate Committee on Agriculture, Nutrition, and Forestry.

The purpose of the hearing was to review the Digital Commodities Consumer Protection Act (DCCPA) which seeks to empower the CFTC “with exclusive jurisdiction over the digital commodities spot market.” The bipartisan bill was introduced in 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 told lawmakers:

Many digital assets constitute commodities … The CFTC’s expertise and experience make it the right regulator for the digital asset commodity market.

He explained that his agency “facilitates customer protections through its principles-based market oversight and disclosure regime aimed at ensuring transparency, integrity, and security of transactions.”

Behnam proceeded to detail that since 2014, the CFTC has brought almost 60 enforcement digital asset-related cases, including a recent matter involving a $1.7 billion fraudulent bitcoin scheme.

“With a lack of full visibility into the digital commodity asset market, the agency’s enforcement program has had to lean primarily on tips and complaints from the public to identify fraud and manipulation,” the CFTC chairman described, adding:

While we are engaged in a comprehensive effort across the agency to police these markets and their participants with the tools currently available to us, the DCCPA will allow us to apply our full oversight capabilities without restriction.

Chairman Behnam concluded that “with the additional resources contemplated by the funding mechanism in the DCCPA and the clear mandates for customer education, outreach, and information gathering to ensure that our efforts reach all demographics of the investing community, … the CFTC can move swiftly in effectuating this new regime.”

Meanwhile, two other bills have been introduced in Congress this year to make the CFTC the primary 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 other bill was the “Digital Commodity Exchange Act of 2022,” introduced 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 said repeatedly that the vast majority of crypto tokens are securities and should fall under the purview of his agency. However, he acknowledged that bitcoin is a commodity. Last week, U.S. Senator Pat Toomey said Congress should step in with crypto guidance and the SEC should provide much more clarity on how it regulates the crypto sector.

Do you think the CFTC should be the primary regulator of the crypto market? Let us know in the comments section below.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Bitcoin above 20K AGAIN! Is Bitcoin Price Bullish Today?

The crypto market is moving still in a sideways trend. Trading cryptocurrencies is being favored by crypto enthusiasts rather than simply buying and holding. The reason for this is that consolidation phases are much more predictable thanks to technical analysis. Crypto traders are loving the current crypto dynamics in the market. After Bitcoin fell to

Breaking: Do Kwon Linked 3,313 Bitcoin To Be Seized? S. Korea Deepens Probe

Trouble for Do Kwon, Terra co-founder seems to be increasing after Interpol issued Red Notice against him. In the latest hit, South Korean authorities have moved on to deepen their probe against the alleged crypto fugitive. Do Kwon to lose his Bitcoins? According to reports, South Korean prosecutors are moving… Read more

Bitcoin Skyrockets As Stock Market Crashes, Is It Breaking Correlation

The crypto market is experiencing a surprise bounce. Bitcoin has rallied from the $18K-$19K range to cross the $20K mark. It has increased by over 5% in the last 24 hours and is currently trading at $20.1K.  However, since the stock markets are dumping, Bitcoin looks to break the correlation…. Read more

Bitcoin and Crypto Defy Wall Street Meltdown With Strong Rally

Wall Street started the week in a correction mode with all three top U.S. indices correcting 1% on Monday, September 26. However, Bitcoin and the broader crypto market have made a surprising move northwards with the BTC price shooting past $20,000 levels. With the recent BTC move, more than $14… Read more