U.S. Senator John Boozman says bitcoin, though a cryptocurrency, is a commodity within the eyes of the federal courts and the Securities and Exchange Commission (SEC) chairman. He confused that exchanges the place commodities are traded, together with bitcoin, have to be regulated and the Commodity Futures Trading Commission (CFTC) is the precise regulator for the crypto spot market.
Bitcoin Is a Commodity
U.S. Senator John Boozman (R-AR), rating member of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, talked about bitcoin and crypto regulation Thursday on the listening to titled “Why Congress Needs to Act: Lessons Learned from the FTX Collapse.” The committee is answerable for the oversight of the U.S. commodity markets.
Bitcoin, though a cryptocurrency, is a commodity. It is a commodity within the eyes of the federal courts and within the opinion of the Securities and Exchange Commission (SEC) chairman. There isn’t any dispute about this.
Calling the FTX collapse “shocking,” the senator stated: “Public reports suggest a complete lack of risk management, conflicts of interest, and misuse of customer funds. There is simply no place for such behavior, especially in our financial markets.”
Senator Pushes for CFTC to Regulate Crypto Sector
Senator Boozman proceeded to speak about crypto regulation and empowering the Commodity Futures Trading Commission (CFTC) as the first regulator of the crypto spot market. He confused:
If there are exchanges the place commodities are traded — be it wheat, oil, or bitcoin — then they have to be regulated. It is that easy. The selection to not regulate leaves customers on the mercy of those that would prey upon them.
“The CFTC has consistently demonstrated its willingness to protect consumers via enforcement actions against bad actors,” Senator Boozman continued, including:
I’m assured the CFTC is the precise company for an expanded regulatory function within the digital commodity spot market.
In August, Boozman and a number of other senators launched the Digital Commodities Consumer Protection Act (DCCPA) to “empower the CFTC with exclusive jurisdiction over the digital commodities spot market.” Two different payments have been launched in Congress this year to make the derivatives regulator the first watchdog for the crypto sector.
While bitcoin is a commodity, SEC Chairman Gary Gensler has stated repeatedly that almost all different tokens are securities.
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