The lawmakers of the United States want to see the crypto regulation authority under the power of the Commodities regulatory body.
At present, the US Securities and Exchange Commission (SEC) is the leading financial regulatory body, which regulates almost the whole crypto industry. Only the swap & futures market is under the regulation of the Commodity Futures Trading Commission (CFTC) agency. In recent months, the majority of the regulatory bodies suggested categorizing the crypto assets under the Security & Commodity assets class, so that crypto companies can understand the rules & laws to comply with laws perfectly.
On 3 August, The Wall Street Journal reported that a bill proposed by the Senate Agriculture Committee Chairwoman and Michigan Democrat Debbie Stabenow and Arkansas Republican Senator John Boozman seeks to provide the authority of crypto industry regulation under the CFTF agency.
At present, CFTC regulates the derivatives market but does regulate the crypto industry under Commodities law. So if the bill gets passed then CFTC will regulate those crypto projects, which operate crypto assets with the nature of the Commodity asset class.
Approval of this bill also brings advantages for the former officials of US govt agencies because it will create new positions. On the other hand, the crypto industry will get better clarity on the assets class.
Josh Rager, crypto trader, and analyst took to Twitter to share information regarding this proposed bill and called it a bullish step.
Few experts noted that the bill only will play a one-sided role in favor to give authority to CFTC to handle regulation but it will create a situation where crypto projects will be required to get registered with the SEC & CFTC both because there are huge numbers of cryptocurrencies, which are commodity & securities at a different time because of different use cases.