Tech

US Senators Propose Cryptocurrency Supervision Law Allowing CFTC as Default Regulator


A bipartisan group of U.S. senators on Wednesday proposed a bill to regulate cryptocurrencies, the latest attempt by Congress to shape an idea of ​​how to oversee a billion-dollar industry. The dollar was hit by the price crash and lenders halting operations. Regulations introduced by Senate Agriculture Committee Chair Debbie Stabenow and top Republican John Boozman will authorize the Commodity Futures Trading Commission (CFTC) to become the default regulator. for electronic money.

The proposed legislation stands in contrast to bills proposed by other members of Congress and consumer advocates, who have proposed giving authority to the US Securities and Exchange Commission.

This year, crypto investors have seen prices plummet and companies collapse with fortunes and jobs disappearing overnight, and a number of companies have been shut down by federal regulators. state charged with operating an illegal stock exchange. Bitcoin, the largest digital asset, traded at an all-time low, falling from over $68,000 (approximately Rs 5,381,900) in November 2021 to around $23,000 (approximately Rs 1,820,300) on Wednesday Private. Industry leaders have called the period “crypto winter,” and lawmakers have attempted to implement rigorous oversight.

The bill by Stabenow, a Democrat from Michigan and Boozman, Arkansas, would require all crypto platforms – including traders, dealers, brokers and websites to hold cryptocurrency. customers – must be registered with the CFTC.

The CFTC has historically been an underfunded regulator and, much smaller than the SEC, has an army of investigators to look into potential misconduct. The bill attempts to alleviate these problems by imposing user fees in the crypto industry, which in turn would fund greater scrutiny of the industry by the CFTC.

“Our bill would give the CFTC exclusive jurisdiction over the digital commodity spot market, which would lead to more protections for consumers, market integrity, and more. and innovation in the digital goods space,” Boozman said in a statement.

Sens. Cory Booker, DN.J. and John Thune, RS.D., were co-sponsors of the measure.

“It is important that the (CFTC) has the right tools in place to regulate this burgeoning market,” said Thune.

The law could be added to the list of proposals that came out of Parliament this year.

Senator Pat Toomey, R-Pa., In April enacted legislation, known as the TRUST Stablecoins Act, that would create a framework to regulate stablecoins, which have suffered massive losses this year. A stablecoin is a cryptocurrency that is pegged to a specific value, usually US dollars, another currency, or gold.

Additionally, in June, Sens. Kirsten Gillibrand, DN.Y. and Cynthia Lummis, R-Wyo., proposed a broad bill, called the Responsible Financial Innovation Act. That bill proposed legal definitions of digital assets and virtual currencies; will ask the IRS for guidance on accepting merchant digital assets and charitable donations; and will distinguish between digital assets that are commodities and digital assets that are securities, which has not been implemented.

Along with the Toomey law and the Lummis-Gillibrand law, a proposal is being put forward on the House Financial Services Committee, although those negotiations have stalled.

Committee Chairwoman Maxine Waters, D-Calif., said last month that while she, top Republican member Patrick McHenry of North Carolina and Treasury Secretary Janet Yellen had made significant progress toward an agreement on the law, “unfortunately we have not yet reached that, and will therefore continue our negotiations during the break in August.”

US President Joe Biden’s working group on financial markets last November released a report calling for Congress to pass legislation regulating stablecoins, and Biden earlier this year issued an executive order calling for more the agency considers ways to regulate digital assets.




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