The Bill by U.S. Senate Committee
The Digital Commodities Consumer Protection Act of 2022 was presented by U.S. senators to give the Commodity Futures Trading Commission (CFTC) exclusive control over the spot market for digital commodities. The Digital Commodities Consumer Protection Act of 2022 was launched on Wednesday by U.S. Senators Debbie Stabenow, John Boozman, Cory Booker, and John Thune.
The introduction of the bill by the U.S. Senate Committee on Agriculture, Nutrition, and Forestry stated that the goal of the bipartisan legislation is to provide the Commodity Futures Trading Commission (CFTC) with additional tools and authority to regulate digital commodities.
As stated by Senator Stabenow, Although one in five Americans have used or traded digital assets, these markets do not meet their expectations for openness and accountability in their financial system. This much too frequently jeopardizes the hard-earned money of Americans. Because of this, she continued, they are eliminating regulatory loopholes and demanding that these markets function under clear regulations that protect consumers and maintain the security of their financial system.
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CTFC in Full Control
The measure closes regulatory loopholes by requiring all digital commodity platforms, including trading facilities, brokers, dealers, and custodians, to register with the CFTC, according to the committee’s review of the proposal. In order to adequately support its monitoring of the digital commodity market, it also authorizes the CFTC to charge user fees on digital commodity platforms. The law also acknowledges that other financial bodies have a role in regulating digital assets that are not commodities, but rather operate more like securities or means of payment.
Boozman pointed out that their legislation will give the CFTC full control over the spot market for digital commodities, resulting in better consumer protections, market integrity, and innovation in the sector. Senator Thune explained that The proposal will give the CFTC the essential market visibility to address emerging threats and safeguard consumers, while also giving regulatory stability to digital commodities platforms.
Source: https://www.thecoinrepublic.com/2022/08/05/the-digital-commodities-law-passed-by-us-senators/