The U.S. Senate Agriculture Committee introduced a bill on Wednesday to put the Commodity Futures Trading Commission (CFTC) at the helm of regulating all cryptocurrencies classified as commodities.
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- The bill would give the CFTC “exclusive jurisdiction” over all “digital commodities,” which includes Bitcoin, Ethereum and other cryptocurrencies that are deemed commodities, and not securities.
- The Digital Commodities Consumer Protection Act of 2022 would make it mandatory for crypto trading platforms, brokers, and custodians to register with the CFTC.
- According to the bill, crypto firms would be required to disclose certain information, such as the operating structure and system of the commodity, trading volume, and volatility of the digital commodities trading on their platform.
- The U.S. derivatives regulator would be in charge of formulating rules to prevent fraud and protect consumers.
- The commission would also be required to publish a report on its website regarding the energy consumption and source of energy of firms under its jurisdiction.
- The bill also allows for double registration, so firms registering with the CFTC can also register with the Securities and Exchange Commission (SEC), whose chief Gary Gensler has been vying for the spot as the top crypto regulator as he claims most crypto tokens are securities.
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