A bipartisan bill introduced in the House this week aims to increase oversight and regulatory clarity of the growing cryptocurrency market, and provide the Commodity Futures Trading Commission (CFTC) with oversight authority of the market.
The Digital Commodity Exchange Act of 2022 – introduced by Reps. Ro Khanna, D-Calif., Glenn Thompson, R-Pa., Tom Emmer, R-Minn., and Darren Soto, D-Fla. – would work to fill gaps between the CFTC and the Securities and Exchange Commission’s (SEC) regulation of the digital asset marketplace.
“To foster American innovation and tech job growth, Congress must establish a clear process for creating and trading digital commodities that prioritizes consumer protections, transparency, and accountability,” Rep. Khanna said in a statement. “This bipartisan bill will create a regulatory framework for these emerging technologies and keep us competitive with the rest of the world.”
Specifically, the bill would provide regulatory oversight for “spot digital commodity exchanges, market intermediaries, and stablecoin providers.” It would also work to build on existing frameworks in commodities law and complement the work of regulators, “including the SEC’s investor protection activities.”
“As digital assets continue to grow in use and importance throughout the world, it is critical Congress take legislative action to promote sensible regulation and define how these markets should be regulated,” Rep. Thompson said.
“[This] legislation is a culmination of years of work to define a framework that fosters innovation, protects consumers, and reduces regulatory uncertainty,” he added. “Closing the spot-market gap is an essential piece of the regulatory puzzle, but more work remains. I look forward to working with my colleagues to bring greater clarity to crypto users and creators and I hope to see it move through the legislative process promptly.”