CFTC and SEC Propose Draft Regulatory Authority
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Republican Senator John Boozman, Chairman of the Senate Agriculture Committee, and Democratic Senator Cory Booker released a draft bill on the 11th. The draft contains brackets indicating unfinished provisions, leaving some sections open to further negotiation. The draft defines key cryptocurrency terms, including blockchain, DeFi, and decentralized autonomous organizations (DAOs), and explains how they would apply to the Commodity Exchange Act.
Senate Committee Chairman John Boozman stated, "The CFTC is the appropriate agency to regulate spot digital commodity trading." Senator Booker stated that the discussion draft "grants the CFTC authority to regulate spot digital commodity markets and provides safeguards for retail customers."
The draft also included a "minority opinion" from some Democratic lawmakers, who argued that certain areas should not be subject to the Agriculture Committee's jurisdiction. They argued that regulations related to blockchain developers and service providers should be coordinated with the Senate Banking Committee.
The Banking Commission oversees the SEC and is responsible for securities-related legislation. Republican lawmakers have already released a discussion draft in July, suggesting it should be combined with the CLARITY Act, which passed the House of Representatives in July. This law places the CFTC in charge of cryptocurrency regulation.
The cryptocurrency industry also praised the progress. Ji-hoon Kim, CEO of the Crypto Council for Innovation, said, "This is significant progress toward establishing a market structure framework for digital goods in the United States." Mason Lino, community director of Stand with Crypto, a Coinbase lobbying organization, emphasized, "The Senate must move quickly and carefully to establish a reasonable regulatory framework."
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
