A team of Republican and Democrat members submitted to the U.S. Commodity Futures Trading Commission (CFTC) cryptocurrency introduced the bill that would give it a greater role to oversee spot markets.
Definition of ‘Digital Commodity’ Created for Cryptocurrencies
A definition for “digital commodities” will be created in conjunction with the Digital Mercantile Exchange Act of 2022 (DCEA), presented today by representatives Glenn Thompson, Ro Khanna, Tom Emmer and Darren Soto.
In addition, the CFTC will be allowed to oversee companies that issue such tokens or allow people to trade.
However, the SEC will continue to oversee tokens that comply with US securities laws.
The following statements were included in the bill:
“The term digital commodity means any convertible, intangible property that can be owned by only one person and transferred from person to person without the need for an intermediary”.
Equity, interest on debt and securities are not included in this definition. In other words, SEC cryptocurrencies and bitcoin will continue to dominate the market.
Digital commodities can only be sold on CFTC-licensed exchanges. These exchanges will have to follow certain rules, such as keeping customers’ cryptocurrencies in selected wallets, protecting customers’ assets, and preventing company funds from mixing with customer funds.
This year’s version of the DCEA law actually represents an updated version of the original bill submitted by Michael Conaway in 2020.
“The Product of Years of Work”
Glenn Thompson, in his statement today, said that this bill is “the result of years of work”:
“Fishing the spot market gap is one of the most important parts of the supervisory network, but there is still work to be done. Together with my colleagues, I look forward to providing greater clarity of control to cryptocurrency users and creators, and hope to see the bill move fast through the legislative process.”
Another architect of the bill, Khanna, said:
“To foster American innovation and the growth of tech business businesses, Congress should establish a clear process for creating and trading digital commodities that prioritizes customer protection, transparency, and accountability.”
*Not investment advice.