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US Senators Introduce Bill to Give CFTC Exclusive Jurisdiction Over Digital Commodities Spot Market

US Senators Introduce Bill to Give CFTC Exclusive Jurisdiction Over Digital Commodities Spot Market

U.S. senators have actually presented the “Digital Commodities Consumer Protection Act of 2022” to empower the Commodity Futures Trading Commission (CFTC) “with exclusive jurisdiction over the digital commodities spot market.”

Digital Commodities Consumer Protection Act

U.S. Senators Debbie Stabenow (D-MI), John Boozman (R-AR), Cory Booker (D-NJ), and John Thune (R-SD) presented Wednesday the “Digital Commodities Consumer Protection Act of 2022.”

The bipartisan bill goals to give the Commodity Futures Trading Commission (CFTC) “brand-new tools and authorities to control digital commodities,” according to the statement of the bill by the U.S. Senate Committee on Agriculture, Nutrition, and Forestry.

Senator Stabenow commented:

One in 5 Americans have actually utilized or traded digital properties — however these markets do not have the openness and responsibility that they anticipate from our monetary system. Too frequently, this puts Americans’ hard-earned cash at threat.

“That’s why we are closing regulative spaces and needing that these markets run under simple guidelines that secure consumers and keep our monetary system safe,” she included.

The introduction of the legislation released by the committee mentions that the bill “closes regulative spaces by needing all digital product platforms — consisting of trading centers, brokers, dealerships, and custodians — to register with the CFTC.” It also “licenses the CFTC to enforce user charges on digital product platforms to completely money its oversight of the digital product market.” In addition, the bill “acknowledges that other monetary companies have a function in controling digital properties that are not commodities, however operate more like securities or types of payment.”

Senator Boozman kept in mind:

Our bill will empower the CFTC with exclusive jurisdiction over the digital commodities spot market, which will lead to more safeguards for customers, market stability and development in the digital commodities area.

“This legislation would offer the CFTC with the required exposure into the market to react to emerging threats and secure customers, while also offering regulative certainty to digital product platforms,” Senator Thune clarified.

What do you think of the Digital Commodities Consumer Protection Act? Let us understand in the comments area below.

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