Legislation asks CFTC to help craft effective crypto rules

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New legislation submitted to Congress aims to push the Commodities Futures Trading Commission (CFTC) to report to bring greater clarity to digital asset markets.

Rep. Darren Soto (D-FL) introduced the two bills yesterday, co-sponsored by Reps Ted Budd (R-NC), Ro Khanna (D-CA) and Warren Davidson (R-OH). The co-sponsors are all members of the Blockchain Caucus, a coalition of lawmakers focused on digital asset issues.

Representative Tom Emmer (R-MN) also co-sponsored the first of two articles, the so-called US Virtual Currency Market and Regulatory Competitiveness Act of 2021. He instructs the CFTC to produce a study comparing the regulation of virtual currencies around around the world, and possibly make recommendations on how regulatory structures in the United States can promote competition and innovation in the digital asset space.

The Virtual Currency Consumer Protection Act 2021 directs the CFTC to produce a report specifically on price manipulation in virtual asset markets and to include regulatory recommendations that could alleviate the problems encountered.

This is not the first time that Congress has seen the two bills. The bills have been introduced in the last two sessions of Congress and have “been successful through the appropriation process,” according to Soto’s announcement. The dialogue around these bills resulted in funding from the LABCFTC and a report from the CFTC on its role related to virtual currencies.

The CFTC appears to be preparing to examine its relationship with digital assets. Commissioner Dawn Stump released a statement on August 23 detailing the CFTC’s role in regulating digital assets in a bid to dispel misunderstandings over the agency’s powers.

Meanwhile, Securities and Exchange Commission Chairman Gary Gensler has expressed the need for SEC oversight of crypto markets, identifying several crypto exchanges as stock exchanges.

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