Bitcoin (BTC) and Ethereum (ETH) to be monitored by CFTC under new US Senate proposal: report
The push to regulate cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) is progressing as a bipartisan bill has been brought before the United States Senate.
According to a new report from The Wall Street Journal, Michigan Democrat Debbie Stabenow, who chairs the Senate Agriculture Committee, is joining forces with Republican John Boozman of Arkansas to authorize the Commodity Futures Trading Commission (CFTC) to control crypto spot markets about a new class of assets called “digital goods.”
The article describes the legislation as the latest salvo in a “competition for jurisdiction” between numerous government agencies and agencies, including the US Securities and Exchange Commission (SEC) and the Federal Reserve.
While the proposed legislation does not include “securities” as part of the redefined asset class, cryptocurrency exchanges such as Coinbase and FTX would fall under the jurisdiction of the CFTC. They would have to register with the agency and offer consumer protection.
Boozman said of the new Digital Commodities Consumer Protection Act proposal of 2022:
“This fast-growing industry is currently largely governed by a patchwork of state-level regulations. It’s just not an effective way to protect consumers from fraud.
Our bill will give the CFTC exclusive jurisdiction over the spot market for digital commodities, leading to increased consumer protections, market integrity and innovation in the digital commodities space.”
The Stabenow-Boozman Act is the third instance of senators proposing bills affecting cryptocurrencies over the past two months.
Last Wednesday, Pennsylvania Republican Pat Toomey and Arizona Democrat Kyrsten Sinema introduced a new measure called The Virtual Currency Tax Fairness Act that would exempt small personal crypto transactions from taxation.
The bill excludes personal crypto transactions worth less than $50 or with profits under $50 from capital gains tax. Under the current system, people using digital assets to pay for goods and services owe capital gains taxes if the coin’s value increases.
Back in early June, another bipartisan proposal by Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) aimed to create a regulatory framework for the crypto industry.
Gillibrand said of the Responsible Financial Innovation Act:
“It is critical that the United States play a leading role in developing policies to regulate new financial products while encouraging innovation and protecting consumers.
[This] is a landmark piece of legislation that will create a regulatory framework that drives innovation, develops clear standards, defines appropriate jurisdictional boundaries, and protects consumers.
[It] will bring clarity to both industry and regulators, while maintaining the flexibility to reflect the ongoing evolution of the digital asset market.”
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