Sens. Debbie Stabenow, D-Mich., and John Boozman, R-Ariz., chairwoman and Ranking Member of the Senate Agriculture Committee, have introduced legislation, the Digital Commodities Consumer Protection Act of 2022 (S. 4760), which would establish a comprehensive regulatory framework for digital assets.
The bill "aims to settle the ongoing dispute between the SEC and the CFTC over primary regulatory jurisdiction for cryptocurrency, with deference being given to the CFTC," according to the law firm Akin Gump, and "creates a new digital commodity asset class, excluding securities, and would empower the CFTC to regulate spot markets for such assets — furthering its jurisdiction beyond derivatives to underlying commodities in the digital asset space."
Senate Minority Whip John Thune, R-S.D., and Sen. Cory Booker, D-N.J., have joined as original co-sponsors. Rep. Sean Patrick Maloney, D-N.Y., has introduced companion legislation in the House.
"Generally consistent with the preferences of the crypto industry, the bill provides the CFTC (which sits within the jurisdiction of the Senate Agriculture Committee) authority to regulate digital commodities," Akin Gump states.
According to a summary of the bill, it defines "digital commodity," which includes bitcoin and ether and excludes certain financial instruments including securities and amends the definition of "commodity" in the Commodity Exchange Act to include "digital commodity."
The bill "would empower the CFTC to regulate spot markets for such assets — furthering its jurisdiction beyond derivatives to underlying commodities in the digital asset space," according to Akin Gump.
The bill would require all digital commodity platforms and companies — including trading facilities, brokers, dealers and custodians — to register with the CFTC through several new registration categories.
