“This bill provides the [CFTC] with the authority to regulate the trading of digital commodities – mandating consistent, rigorous rules for all market participants. These rules hold digital commodity platforms to the same standards as traditional financial institutions. They are designed to protect consumers and empower them to make more informed trading decisions,” a summary of the legislation provided in the statement said.
US Senators Debbie Stabenow, John Boozman, Cory Booker and John Thune introduced the bipartisan legislation, known as the Digital Commodities Consumer Protection Act of 2022, the statement said.
One in five Americans have used or traded digital assets, according to the statement. However, such markets lack the transparency and accountability that the US financial system has come to expect, Stabenow said in the statement.
The legislation requires all digital commodity platforms to register with the CFTC, prohibit abusive trading practices and adhere to advertising and risk disclosure standards, the summary also said.
Additionally, the bill authorizes the CFTC to impose user fees on digital commodity platforms to fund its oversight of the market, as well as directs the commission to examine the racial and gender demographics of the market to inform rulemaking, the summary said.
The bill would consider cryptocurrencies such as bitcoin and ethereum digital assets, and include digital assets in the definition of commodity under the Commodity Exchange Act.