The CFTC may soon have more authority over crypto trading thanks to a new bill

The CFTC may soon have more authority over crypto trading thanks to a new bill.

If the new crypto measure introduced by Arkansas Republican John Boozman and Michigan Democrat Debbi Stabenow becomes law, the CFTC will have complete regulatory authority over bitcoin and Ethereum, the two largest and most widely used digital currencies in the world.

The CFTC’s Role Would Be Predominant.

The bill explicitly classifies Ethereum and Bitcoin as commodities. Additionally, they are responsible for nearly 65% of all trades made with virtual currencies. Therefore, the CFTC would have a great deal of control over crypto regulation in the future months and years if it were given authority over these two organizations.

Although it is unclear at this moment which currencies would fall under the purview of the CFTC or the SEC, it is safe to assume that control and oversight of the remaining coins on the market today would be split evenly between the two agencies.

In recent months, crypto regulation has risen to the top of the agendas of every member of Congress. Cynthia Lummis of Wyoming and Kristen Gillibrand of New York recently submitted a measure that will have far-reaching effects on the future of crypto legislation and bill wording.

A few months ago, Vice President Joe Biden signed an executive order regarding cryptocurrency that mandated all federal financial authorities in the United States investigate and report on the pros and cons of cryptocurrency. An electronic form of the US dollar may now be feasible thanks to the order.

The new law mandates that any website or exchange that facilitates the buying and selling of digital assets must be registered with the Commodity Futures Trading Commission. Stabenow claims that the current lack of openness in the crypto field is what inspired her to draft and introduce the bill. She also stresses the importance of transparency and security for cryptocurrency investors, saying that all organizations operating in this space must adhere to these standards.

In her opinion:

This is why we are working to fill in regulatory gaps and ensure that these markets adhere to clear guidelines designed to safeguard consumers and the stability of the financial system as a whole.

New Jersey Senator Cory Booker and South Dakota Senator John Thune have signed on as co-sponsors of the legislation. Boozman has expressed confidence in the bill’s passage despite its provisions that would give the CFTC extensive new powers. As he put it:

When friends aren’t scattered, it’s much easier for the group as a whole.

Is there a chance that this might succeed?

The Center for American Progress’s director of financial regulation and corporate governance, Todd Phillips, has nothing but praise for the legislation:

It establishes rules for crypto commodities without usurping power from the Securities and Exchange Commission. Brokers are singled out for mandatory registration and oversight.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.