U.S. Senate Agriculture Committee’s encryption draft gives CFTC new powers, but key issues remain unresolved

PANews reported on November 11 that according to The Block, the U.S. Senate Agriculture Committee released a draft legislation to regulate the encryption industry, giving the U.S. CFTC new powers. Previously, the House of Representatives passed the Digital Asset Market Transparency Act in July, and the Senate then began to formulate its own relevant legislation. The draft proposed by the Republican-led Senate Banking Committee aims to divide the jurisdiction of the SEC and CFTC and introduce a new concept of “auxiliary assets” to clarify which cryptocurrencies do not fall into the category of securities. Given that the Senate Agriculture Committee has jurisdiction over the CFTC, the draft proposed by it is particularly critical. The 155-page draft defines digital commodities and establishes the CFTC’s regulatory system.

Cory Booker, the drafter of the draft, said that more work still needs to be done, and he is particularly concerned that insufficient resources of the CFTC and the issue of bipartisan committee members may lead to regulatory arbitrage. He is also concerned about public corruption and whether regulatory measures are perfect. The Agriculture Committee draft provides a new funding source for the CFTC, stating that the CFTC should charge fees to unspecified crypto entities. The brackets in the draft reflect "outstanding issues" that still need to be resolved through negotiation between the two parties. In addition, Democrats face obstacles from conflicts of interest in Trump’s crypto business, and the Agriculture Committee draft already contains provisions regarding conflicts of interest.

Disclaimer: The views in this article only represent the author's personal views and do not constitute investment advice from this platform. This platform does not make any guarantees about the accuracy, completeness, originality and timeliness of the information in the article, nor is it responsible for any losses caused by the use or reliance of the information in the article.