US Senators Introduce Bill to Give CFTC Exclusive Jurisdiction Over Digital Commodities Spot Market

U.S. senators have introduced the “Digital Commodities Consumer Protection Act of 2022” to empower the Commodity Futures Trading Commission (CFTC) “with exclusive jurisdiction over the digital commodities spot market.”

Digital Commodities Consumer Protection Act

U.S. Senators Debbie Stabenow (D-MI), John Boozman (R-AR), Cory Booker (D-NJ), and John Thune (R-SD) introduced Wednesday the “Digital Commodities Consumer Protection Act of 2022.”

The bipartisan bill aims to give the Commodity Futures Trading Commission (CFTC) “new tools and authorities to regulate digital commodities,” according to the announcement of the bill by the U.S. Senate Committee on Agriculture, Nutrition, and Forestry.

Senator Stabenow commented:

One in five Americans have used or traded digital assets — but these markets lack the transparency and accountability that they expect from our financial system. Too often, this puts Americans’ hard-earned money at risk.

“That’s why we are closing regulatory gaps and requiring that these markets operate under straightforward rules that protect customers and keep our financial system safe,” she added.

The overview of the legislation published by the committee states that the bill “closes regulatory gaps by requiring all digital commodity platforms — including trading facilities, brokers, dealers, and custodians — to register with the CFTC.” It also “authorizes the CFTC to impose user fees on digital commodity platforms to fully fund its oversight of the digital commodity market.” In addition, the bill “recognizes that other financial agencies have a role in regulating digital assets that are not commodities, but function more like securities or forms of payment.”

Senator Boozman noted:

Our bill will empower the CFTC with exclusive jurisdiction over the digital commodities spot market, which will lead to more safeguards for consumers, market integrity and innovation in the digital commodities space.

“This legislation would provide the CFTC with the necessary visibility into the marketplace to respond to emerging risks and protect consumers, while also providing regulatory certainty to digital commodity platforms,” Senator Thune clarified.

What do you think about the Digital Commodities Consumer Protection Act? Let us know in the comments section below.