A US Senate committee plans to introduce a cryptocurrency bill. Its goal would be to give the Commodity Futures Trading Commission more regulatory powers to oversee the crypto market.
Establish the CFTC as the main regulator of cryptocurrencies
Chair of the Michigan Senate Committee on Agriculture, Democrat Debbie Stabenowand Republican Senator from Arkansas, John Bozeman, wants the bill to establish national regulatory standards for cryptocurrencies. I would amend the product definition to include “digital products.” This would apply to many cryptocurrencies, including bitcoin and ethereum, giving the CFTC jurisdiction over the industry.
In addition, the bill would also introduce new similar categories. In fact, digital commodity traders, digital commodity brokers and digital commodity custodians should register with the authority.
“We are closing regulatory loopholes and requiring these markets to operate under simple rules that protect customers and keep our financial system safe,” Senator Stabenow said in a statement.
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Crypto exchanges must register
Therefore, all cryptocurrency exchange platforms would also be required to register with the CFTC. In fact, they will be held to the same standard as traditional commodity brokers. In addition to protecting investors from abuse, exchanges would be required to monitor crypto exchanges and release data in a timely manner.
All cryptocurrency brokers and traders must keep records of all digital goods transactions. In addition, they must provide information to the Commission when it requests it. Consumers must be offered fair prices and be protected by providing safeguards against cyber attacks. This while creating risk management systems. Cryptocurrency exchanges must also disclose conflicts of interest. Additionally, they must ensure that investors are aware of the risk involved in trading cryptocurrencies.
Second cryptocurrency bill
Incidentally, this would be the second bill introduced in the US Senate aimed at providing a regulatory framework for cryptocurrencies. Democratic Sen. Kirsten Gillibrand of New York and Republican Sen. Cynthia Lummis of Wyoming introduced the first in June. it’s about fact the responsible financial innovation law.
In addition to that, this law would also define the form of determine your ranking. This as merchandise or as a title depending on its use. In addition, it would define consumer protections and fiscal details.
Bonus: Coinshares records over $21 million in losses due to the collapse of Terra.