Bitcoin, Ether to come under commodity regulator, new US Senate bill

Bitcoin, Ether to come under commodity regulator, new US Senate bill

Senate bill would give oversight of bitcoin and ether to commodity regulator

A new bill introduced in the US Senate would make the Commodity Futures Trading Commission (CFTC) the direct regulator of the biggest cryptocurrencies.

The measure, introduced by top Democrats and Republicans on the Senate Agriculture Committee, would give the derivatives regulator exclusive jurisdiction over bitcoin and ether, the two most popular cryptocurrencies, as well as any other crypto product that is considered a commodity.

It would also require those companies providing crypto platforms to register with the CFTC, including brokers, custodians, and exchanges. That registration would come with requirements to maintain fair prices, prevent market manipulation, avoid conflicts of interest and maintain “adequate financial resources,” according to a description of the bill provided by the senators.

Sponsors of the measure, including Senate Agriculture Committee Chair Debbie Stabenow and Senator John Boozman, the panel’s lead Republican, argued that it would bring much-needed regulatory clarity to the crypto market by placing a large part of its policing under a single regulator.

“This fast-growing industry is currently governed largely by a patchwork of state-level regulations. This is simply not an effective way to protect consumers from fraud,” Boozman said in a statement.

The bill joins a growing list of laws aimed at clarifying cryptocurrency rules, with House and Senate lawmakers working on measures intended to place guardrails around the market, which has seen a flurry of significant turbulence and high-profile failures in recent months.

Stabenow told reporters that the bill was not intended to cover the entire cryptocurrency market, nor to undermine the Securities and Exchange Commission’s ability to police crypto products that operate more like securities. movables.

“We don’t define what a security is. I have great faith in President Gensler to be able to use his powers,” she said.

As the window closes for legislative action ahead of November’s midterm elections, Stabenow and Boozman have both insisted they want to push the legislation forward as quickly as possible, without setting a specific timeline.

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