FTX CEO Sam Bankman-Fried praised the empowerment bill introduced in the US Congresspowers to regulate the cryptocurrency market of the Commodity Futures Trading Commission (CFTC).
“It will provide clear federal oversight of the commodity markets of digital assets, strengthening liquidity and creating barriers for unscrupulous participants in the ecosystem”- he declared.
Bankman-Fried noted that the bill complements previous initiatives by Cynthia Lummis and Kirsten Gillibrand, as well as Ro Hannah.
Digital Consumer Protection Lawdrafted by Senators Debbie Steablenau, John Boozman, Corey Booker, and John Toon. It obliges firms that offer trading in digital assets to register with the CFTC.
According to the document, compliance with the status of a security of a particular cryptocurrency will be determined by the court and the SEC, but in its absence, the agency may recognize the asset as an exchange commodity.
The law will give the CFTC "exclusive jurisdiction over any account, agreement, contract or transaction relating to the trading of digital goods."
“The cryptocurrency market lacks transparency andaccountability. Too often, this puts Americans' hard-earned money at risk. We are addressing regulatory gaps and requiring these markets to operate with simple rules that protect customers and keep our financial system safe.”, Steiblenau explained.
The initiative was supported by the head of the CFTC, Rostin Benham.
“We are at a critical inflection point where new legislative powers are needed to address uncertainties and secure a regulatory framework,”- he said.
Steablenau and Buzman expect the Digital Consumer Protection Act to pass in 2022.
Recall that in July, the head of the SEC, Gary Gensler, announced the development of ways to register digital assets as securities.
In May, the official said that most cryptocurrencies fall under the jurisdiction of his department.
Earlier, the CFTC announced the creation of the Office of Technology Innovation, which will regulate the industry.
Read ForkLog's bitcoin news on our Telegram — cryptocurrency news, rates, and analytics.
Read this:
The CFTC will create a new division to oversee cryptocurrencies
The CFTC Chairman considers Ether a “commodity”
Sam Bankman-Freed Posts FTX Profits Amid Losses Due to Industry Support
CFTC Chair Confirms Ethereum Futures Launch
Sam Bankman-Fried: The main reason for the recession in the crypto markets is the policy of the Fed
Sam Bankman-Fried: Cryptocurrencies Will Thrive in Latin America