The U.S. House of Representatives Agricultural Committee has introduced a bill that gives the Commodity Futures Trading Commission (CFTC) the exclusive right to regulate transactions with cryptocurrencies.
The Digital Goods Consumer Protection Act should define a “digital good” that would include cryptocurrencies like bitcoin and ether, excluding digital assets that may fall under the definition of a security. The law will allow the CFTC to control both digital goods transactions and the registration of digital goods platforms.
The crypto industry has long been demanding from the US authorities a clear definition of a “digital good” or the concept of digital security. This could give companies more clarity on when and how they should register with the regulator. The bill would give the CFTC the power to define digital goods itself.
Much of the bill is dedicated to detailing how both crypto brokers and their traditional finance counterparts will be regulated. Right now, most cryptocurrency exchanges are regulated at the state level, with no clear federal registration or oversight rules. The SEC, a peer of the CFTC, believes that crypto exchanges listing digital securities should be treated as national securities exchanges.
While the SEC has been slow in creating regulations establishing this type of registration requirement, CFTC Chairman Rostin Behnam has ensured that his commission has become the main regulator of the cryptocurrency spot market.
Last month, the CFTC announced the creation of a new division to oversee technical innovation, which, among other things, will regulate the cryptocurrency market.
Source: Bits
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