A new bill introduced in the U.S. Senate would make the Commodity Futures Trading Commission (CFTC) the direct regulator of the biggest cryptocurrencies.
The measure, introduced by the top Democrat and Republican on the Senate Agriculture Committee, would give the derivatives regulator exclusive jurisdiction over bitcoin and ether, the two most popular cryptocurrencies, as well as any other crypto products that are determined to be commodities.
It would also require such companies providing crypto platforms to register with the CFTC, including brokers, custodians and exchanges. That registration would come with requirements to maintain fair pricing, prevent market manipulation, avoid conflicts of interest and maintain “adequate financial resources,” according to a description of the bill provided by senators.
Sponsors of the measure, including Senate Agriculture Committee Chairwoman Debbie Stabenow and Sen. John Boozman, the panel’s top Republican, argued it would provide much needed regulatory clarity to the crypto market by placing a major portion of its policing under a single regulator.
“This fast-growing industry is currently governed largely by a patchwork of regulations at the state level. That simply is not an effective way to protect consumers from fraud,” said Boozman in a statement.