US senators introduced the “Digital Commodities Consumer Protection Act of 2022” to enable the Commodity Futures Trading Commission (CFTC) “exclusive jurisdiction over the digital commodity spot market.”
Consumer Protection for Digital Goods Act
U.S. Senators Debbie Stabeno (Michigan), John Bozeman (R-Aristocratic), Cory Booker (D-NJ), and John Thune (R-MD) on Wednesday introduced the “Digital Goods Consumer Protection Act of 2022.”
The bipartisan bill aims to give the Commodity Futures Trading Commission (CFTC) “new tools and powers to regulate digital goods,” according to an announcement from the US Senate Committee on Agriculture, Nutrition and Forestry.
Senator Stabbino commented:
One in five Americans have used or traded digital assets – but these markets lack the transparency and accountability they expect from our financial system. All too often, this puts Americans’ hard-earned money at risk.
“That’s why we are closing regulatory gaps and demanding that these markets operate according to clear rules that protect customers and keep our financial system safe,” she added.
The overview of the legislation published by the commission states that the bill “closes regulatory gaps by requiring all digital commodity platforms – including trading facilities, brokers, dealers and custodians – to register with the CFTC.” It also “authorizes the Commodity Futures Trading Commission (CFTC) to charge a user fee on digital commodity platforms to fully fund their oversight of the digital commodity market. Additionally, the bill “recognizes that other financial agencies have a role in regulating digital assets that are not commodities,” But it works like securities or forms of payment.”
Senator Bozeman noted:
Our bill would enable the Commodity Futures Trading Commission (CFTC) to have exclusive jurisdiction over the spot market for digital goods, which would lead to greater assurances for consumers, market integrity and innovation in digital goods.
Senator Thune explained: “This legislation will provide the CFTC with the necessary market insight to respond to emerging risks and protect consumers, while providing regulatory certainty to digital commodity platforms.
What do you think of the Consumer Protection for Digital Goods Act? Let us know in the comments section below.
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