According to Commissioner Summer Mersinger, who recently spoke at the Reuters Commodity Trading U.S. conference in Houston, the Commodity Futures Trading Commission (CFTC) is working to become the primary regulator of the crypto industry.
Mersinger is one of five members of an independent committee that has begun reviewing its potential role in cryptocurrencies. She believes that while the CTFC has historically not regulated the spot market, the CTFC “may have a somewhat larger role” in areas such as spot market crypto trading.
“You’re going to see the entire industry coalesce around the CFTC being the primary regulator,” she added. “We’re still a strong regulator, but we have a lot of flexibility with our registrants. With some other financial regulators They are very interested in this approach compared to the top-down approach of the agency.”
The SEC under Gary Gensler claims that many cryptocurrencies are considered “securities” under its control. However, many in the industry have expressed a willingness to accept CFTC regulation.
Cynthia Loomis’ bill
On Tuesday, Senators Cynthia Lummis (R-Wyo.) and Kirsten Gilligrabd (D-NY) introduced a bill called the Responsible Financial Innovation Act, which seeks to create a “complete regulatory framework for digital assets.” , to balance the current needs of the market with guardrails and consumer protection, while promoting financial innovation.
Under the bill, cryptocurrencies would be classified as “commodities” or “securities” depending on “the purpose of the asset and the rights or powers it conveys to consumers.” However, Bitcoin and Ethereum, which hold a significant share of the global cryptocurrency market capitalization, will be considered “commodities”, gaining the status of “ancillary assets.”
“As this industry continues to grow, it is critical that Congress crafts legislation to foster innovation while protecting consumers from bad actors,” Ms Loomis said.
Senator Lummis has been the most vocal cryptocurrency advocate in the Senate since taking office last year. According to her 2022 financial disclosure, she reportedly owns between $100,000 and $250,000 in bitcoin.
Earlier this month, the CFTC filed a lawsuit against Gemini, alleging that the exchange filed false or misleading statements about its bitcoin futures product. The regulator said the New York-based exchange “made materially false or misleading representations and omissions to the Commission.”
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