The CFTC is being considered the most friendly regulatory agency for the digital currency space.
Glenn William “GT” Thompson, U.S. Rep. for Pennsylvania and California Rep. Ro Khanna are teaming up on a bill that would grant the Commodity Futures Trading Commission (CFTC) more power over multiple cryptocurrencies in the spot market.
The bill, if passed, would give the CFTC direct oversight over a large part of cryptocurrency exchanges, and the federal agency would be allowed to treat digital currency trading platforms like designated contract markets.
— Sam Sutton (@samjsutton) April 28, 2022
According to people familiar with the matter, the bill, which is set to be introduced later today, is also co-sponsored by Rep. Darren Soto, a member of the Congressional Blockchain Caucus.
It is worth noting that the bill is originating from the House Agriculture Committee, which oversees the Commodity Futures Trading Commission.
The latest push by lawmakers is part of efforts to establish cryptocurrency bills for the nascent industry, following a directive by the Joe Biden administration in the recently published cryptocurrency executive order.
Calls to Give CFTC More Control Over Cryptos
The development marks a growing call by members of the cryptocurrency community for United States regulators to grant the CFTC more regulatory power over the digital currency market.
This is mainly because of the Securities and Exchange Commission’s use of unconventional methods in regulating the industry over the past few years.
The SEC has come under widespread scrutiny for its method of providing regulatory oversight for crypto-related businesses, including Ripple.
On several occasions, the SEC’s regulatory measures in the cryptocurrency space have been condemned, with many players stating their preference for the CFTC.
Yesterday, Brad Garlinghouse, the CEO and founder of Ripple, noted that he would opt for CFTC as the best regulatory agency to oversee the cryptocurrency market.
Similarly, Brian Armstrong, the CEO and founder of Coinbase, also noted in a recent interview that not all cryptocurrencies fall under the laws of the SEC, which has been widely accused of abusing the Howey test in determining which digital currency is security.
Anti-Crypto Players May Push to Stop the Bill
While the bill is yet to be introduced, there is a chance that it could be adopted. However, anti-crypto lawmakers and experts who seem happy with how the SEC is handling the nascent asset class may do everything possible to stop the bill from being passed.
Attorney James K. Filan commented on the development, saying:
“This is where Gensler digs in to protect what he sees as his turf. Controlling the exchanges has always been his hammer to control the crypto space. If he controls the exchanges, he controls what is traded on them. Don’t expect anything but a huge fight from him and @SenWarren.”
This is where Gensler digs in to protect what he sees as his turf. Controlling the exchanges has always been his hammer to control the crypto space. If he controls the exchanges, he controls what is traded on them. Don't expect anything but a huge fight from him and @SenWarren.
— James K. Filan 🇺🇸🇮🇪90k+ (beware of imposters) (@FilanLaw) April 28, 2022