U.S. Senator John Boozman says bitcoin, though a cryptocurrency, is a commodity within the eyes of the federal courts and the Securities and Alternate Fee (SEC) chairman. He careworn that exchanges the place commodities are traded, together with bitcoin, have to be regulated and the Commodity Futures Buying and selling Fee (CFTC) is the fitting regulator for the crypto spot market.
Bitcoin Is a Commodity
U.S. Senator John Boozman (R-AR), rating member of the U.S. Senate Committee on Agriculture, Vitamin, and Forestry, talked about bitcoin and crypto regulation Thursday on the listening to titled “Why Congress Needs to Act: Lessons Learned from the FTX Collapse.” The committee is chargeable for the oversight of the U.S. commodity markets.
Bitcoin, though a cryptocurrency, is a commodity. It’s a commodity within the eyes of the federal courts and within the opinion of the Securities and Alternate Fee (SEC) chairman. There isn’t any dispute about this.
Calling the FTX collapse “shocking,” the senator stated: “Public reports suggest a complete lack of risk management, conflicts of interest, and misuse of customer funds. There is simply no place for such behavior, especially in our financial markets.”
Senator Pushes for CFTC to Regulate Crypto Sector
Senator Boozman proceeded to speak about crypto regulation and empowering the Commodity Futures Buying and selling Fee (CFTC) as the first regulator of the crypto spot market. He careworn:
If there are exchanges the place commodities are traded — be it wheat, oil, or bitcoin — then they have to be regulated. It’s that easy. The selection to not regulate leaves shoppers on the mercy of those that would prey upon them.
“The CFTC has consistently demonstrated its willingness to protect consumers via enforcement actions against bad actors,” Senator Boozman continued, including:
I’m assured the CFTC is the fitting company for an expanded regulatory position within the digital commodity spot market.
In August, Boozman and a number of other senators introduced the Digital Commodities Client Safety Act (DCCPA) to “empower the CFTC with exclusive jurisdiction over the digital commodities spot market.” Two other bills have been launched in Congress this 12 months to make the derivatives regulator the first watchdog for the crypto sector.
Whereas bitcoin is a commodity, SEC Chairman Gary Gensler has stated repeatedly that most other tokens are securities.
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