US lawmaker Mike Conaway proposes federal regulation of crypto exchanges

Regulation of cryptocurrency exchanges in the United States could move to the federal level. A bill to do so was proposed by Representative Mike Conaway.

Draft Bill2 by MichaelPatrickMcSweeney

The Digital Commodity Exchange Act (DCEA) would place cryptocurrency trading platforms on a level with swap venues and futures markets regulated by the Commodity Futures Trading Commission (CFTC). This would remove the need to classify exchanges as money-transmitters.

The proposed law offers a voluntary choice: platforms can be regulated at the state level or within a single national framework at the federal level. However, registering as a DCE would not be sufficient to offer derivatives trading.

Representative Mike Conaway, a Republican, seeks to require exchanges to add assets that are “not easily manipulated.”

Cryptocurrency firms would have the option to obtain the status of a “qualified custodian of digital assets” — for this, the CFTC would set a minimum set of requirements.

Earlier, the Conference of State Bank Supervisors (CSBS) simplified the licensing process for crypto and fintech firms.

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