The White House representatives aimed to vote on a bill to give authority to the CFTC body to regulate crypto under the Commodities rules.
The Commodity Futures Trading Commission (CFTC) regulates U.S. derivatives markets, including crypto futures. It sees cryptocurrencies as commodities and oversees their trading to prevent fraud and manipulation while supporting innovation with proper regulation. In the present time, the CFTC body regulates only a very limited portion of the crypto sector with the help of traditional rules & laws.
As per a latest report by a16zCrypto, the White House representatives will vote on a bill HR (4763), by the end of this month.
This bill aimed to provide full legal authority to the CFTC body to use clear rules & laws to regulate all those Cryptocurrency projects & crypto companies dealing with Commodities or digital assets that are Commodities by nature.
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The CFTC would regulate a digital asset as a commodity if it is functional and decentralised.
The United States Securities and Exchange Commission (SEC) body would regulate a digital asset as a security if its associated blockchain is functional but not decentralised.
Under this bill decentralisation means “no person has unilateral authority to control the blockchain or its usage, and no issuer or affiliated person has control of 20% or more of the digital asset or the voting power”.
Now it will be interesting to see whether this bill will get major support or not, because this bill may bring proper clarity to the crypto rules & laws but it will also be interesting to see the response by US crypto law experts.
In the past many times, many top crypto companies raised their voice against unclear crypto rules & laws. In particular, crypto advocates say the SEC body misuses its power against the crypto sector, despite the SEC body having no authority to regulate the crypto sector.
In the absence of unclear rules & laws, hostile situations are very tough for crypto companies to run business.
Read also: Crypto hater, FDIC chair steps down, Good news for the crypto sector
White House representatives to vote for a bill to allow CFTC & SEC to regulate Crypto
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