CFTC, an independent federal agency, regulates the derivatives market in the United States. CFTC includes future contacts, options, and swaps. CFTC allows the promotion of competitive markets. This site protects the investors against manipulation, abusive trade practices, and fraud. The CFTC was established in 1974. Now 3 bills are being launched in the United States to regulate cryptocurrency spot markets.
A lengthy debate was held on which commission will become the primary regulator of the crypto spot market. The competition was between the securities and exchange commission and the CFTC. Crypto wants the SEC to define a digital commodity clearly. Crypto will then be cleared when they can register with CFTC or the securities and exchange commission.
3 bills have been introduced in the U.S. congress this year. These bills were introduced to make the CFTC to be the primary regulator of the crypto spot market. The bills are as follows:
The bill was introduced in 2022 by U.S senators. The senators who were involved were Debbie Stabenow (D-MI), John Boozman (R-AR), Cory Booker (D-NJ), and John Thune (R-SD). Senator Boozman commented on the process, stating: “ This bill will give power to the CFTC. The CFTC will have jurisdiction over the digital spot commodities pot market. This will make the consumers feel more secure. The integrity and innovation in the market will be increased”.
Another act was proposed in this regard in June by U.S. Senators. The involved senators are Cynthia Lummis (R-WY) AND Kristen Gillibrand (D-NY). This act assigns the regulatory authority over digital assets spot markets to the CFTC.
In April, the third bill was introduced in this regard by Reps. Ro Khanna (D-CA), Glenn “GT” Thompson (R-PA), Tom Emmer (R-MN), and Darren Soto (D-FL). Quote and quote “Congress must establish a clear process for creating and trading digital commodities that prioritizes consumer protection. This will also give the process transparency and accountability. The digital commodity act will cause an increase in the foster American innovation technology job growth”.
The advantage of this process of 3 bills is that this will prioritize the protection of the consumer. Their identity will be in safe hands. There will be complete transparency and accountability in this after the passing of these 3 bills.