A US Senate committee has shared a new draft proposal to set clearer rules for regulating cryptocurrency markets.
The draft was released on November 10 by the Senate Agriculture Committee, which oversees the Commodity Futures Trading Commission (CFTC). It was introduced by Republican Senator John Boozman and Democrat Senator Cory Booker.
The proposal still has many sections marked for further discussion. These parts are still being negotiated and may change before the bill advances.
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The main goal of the draft is to define the responsibilities of two key regulatory agencies: the CFTC and the Securities and Exchange Commission (SEC).
Senator Boozman said the CFTC is best suited to regulate trading in digital commodities, and that clear guidelines are important to protect consumers.
Senator Booker added that the proposal would give the CFTC more tools and staff to keep up with the fast growth of this industry and would add new rules to protect individual investors.
The draft also includes definitions of terms like “blockchain”, “decentralized finance”, and “decentralized autonomous organizations”. These terms are explained in the context of how they would be treated under current laws, particularly the Commodity Exchange Act.
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