US Senators To Place Crypto Regulation Under The CFTC

Financial authorities and regulators are currently working on guidelines for the crypto sector. The United States is not left out.

According to reports, the country’s Senate committee is working on a bill for digital currencies like BTC and ETH. This bill would classify digital currencies under commodities. 

As a result, there would be under the jurisdiction of the commodities regulator, CFTC. The developers of the bill are Sen John Boozman of Arkansas and Debbie Stabenow of Michigan.

New Crypto Bill Classifies Ethereum As A Commodity

According to The Wall Street Journal, the CFTC (the Commodity Futures Trading Commission) would regulate the spot markets for these assets. Currently, the commodities regulator can only oversee and control derivatives such as futures and swaps but not commodities.

Meanwhile, this bill is great news for the crypto community. Also, the CFTC would receive more funding, influence, and official positions if the bill is endorsed. 

Furthermore, the members of Congress that belong to bodies that supervise such agencies stand to gain more campaign donations and lobbyists. 

According to Josh Rager, an analyst and crypto traded, this bill is a welcome development for Ethereum. This is because the bill classifies Ethereum as a commodity contrary to popular opinion that it is a security. 

Meanwhile, this proposal would join the long list of bills on crypto regulation released in the US recently. The US has taken the issue of crypto regulation seriously despite being sluggish at first.

Friendly Crypto Bills In The US

In June, Sen Kirsten Gillibrand and Cynthia Lummis proposed a crypto bill. The bill aims to ensure the proper classification of digital assets. 

This is due to the ongoing battle about which cryptocurrencies are securities and those that are commodities. Also, it would lay out regulations for exchanges.

Last month, Sen Patrick Toomey of Pennsylvania and Sen Kyrsten Sinema of Arizona submitted a proposal to the Senate. The proposal aims to stop Americans from paying tax on transactions below $50.

Additionally, Chris Sununu, New Hampshire’s Governor, signed a bill in June. The bill exempts the seller, facilitator, or developer of an exchange firm from some securities laws. 

Furthermore, John Bel Edwards, the Governor of the US state of Louisiana, approved a legislation. This legislation grants financial institutions in the state the power to be crypto custodians. This means they can keep custody of BTC and other crypto assets on behalf of customers.