New Regulatory Authority for Crypto Proposed
The U.S. Senate has introduced a draft bill aimed at overhauling the regulatory framework for cryptocurrencies. The bill seeks to clarify how digital assets, such as Bitcoin and Ether, are treated under U.S. law. This move could significantly impact how the crypto market operates in the future, offering new regulations that could reshape the landscape for crypto businesses and investors.
The Senate Agriculture Committee released its portion of the bill, which would empower the Commodity Futures Trading Commission (CFTC) to oversee digital commodities. The CFTC would gain regulatory authority over cryptocurrencies like Bitcoin and Ether, shifting oversight away from the Securities and Exchange Commission (SEC). This proposal addresses concerns about the need for clearer regulations and aims to provide consistent guidance for crypto market participants.
Republican Senator John Boozman and Democratic Senator Cory Booker have championed the bill, highlighting the importance of protecting consumers while promoting market transparency. The CFTC is the right agency to regulate spot digital commodity trading, Boozman said. Meanwhile, Booker stressed the necessity of strengthening regulatory frameworks to protect consumers from predatory practices in the rapidly growing crypto market.
Challenges and Negotiations Ahead for Crypto Legislation
Despite the bill’s significant progress, lawmakers still face challenges in resolving key issues. Notably, some definitions within the bill remain in flux, as lawmakers negotiate the final language. In addition, questions surrounding decentralized finance (DeFi) and anti-money laundering provisions have sparked ongoing debates, as the crypto industry continues to push for fewer regulations.
The Senate’s push for a comprehensive crypto market structure is being closely followed, especially as both the Agriculture and Banking Committees work toward a final version of the bill. With the goal of passing the legislation by the end of the year, senators hope to resolve outstanding issues and finalize the bill’s details. This draft is an important step toward establishing a clear and unified approach to regulating the crypto market in the U.S.