US congressman introduces bill on CFTC oversight of crypto exchanges

Representative Glenn Thompson представил for public comment the Digital Commodity Exchange Act (DCEA), establishing a voluntary regulatory regime for cryptocurrency exchanges under the aegis of CFTC.

Currently, spot trading of digital assets in the United States is not regulated at the federal level.

The Republican representative on the House Agriculture Committee, Thompson, hopes to receive input from industry participants.

«Bringing the proposal to Congress would amount to a step back from the initiative. I want to ensure that we get the best version», — he told The Block.

In October, Rostin Behnam, the candidate to head the CFTC, at congressional hearings proposed to vest the agency with the status of the primary federal regulator for the cryptocurrency market.

Chairman SEC Gary Gensler has repeatedly noted that the overwhelming majority of cryptocurrencies meet the status of a security. Previously, the agency’s head urged Bitcoin exchanges to engage in dialogue.

In the DCEA, Thompson proposed a spot regime for crypto markets and delegated to the CFTC a larger share of its oversight powers.

«The Commission has exclusive jurisdiction over agreements, contracts, and transactions related to the sale of any digital commodity in commerce», — the document says.

According to the bill, such a regime would be voluntary, but it would replace state licensing. The proposal would not expand the CFTC’s existing enforcement powers over platforms serving U.S. customers.

«There are some initial proposals that would clearly be considered securities, and it’s better to leave them with the SEC. But once cryptocurrencies are issued and they operate as exchange-traded commodities, their regulation becomes the province of the CFTC», — пояснил Томпсон.

The bill builds on similar proposals by another Republican in the House, Mike Conaway.

Thompson added a section on stablecoin issuers, which would be defined in the bill as “operators of fixed-value digital commodities”. The legislator proposed addressing a number of issues related to the redemption of reserve assets and disclosure.

As with Bitcoin exchanges, the DCEA envisages a voluntary regime for stablecoin issuers without penalties for refusing to register.

The U.S. Treasury Department issued a report on the risks associated with stablecoins. The agency identified stablecoins as a threat to investors and market integrity, and called for stringent legislative restrictions.

Earlier, Glenn Thompson opposed the SEC’s approach to regulating cryptocurrencies.

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