The Digital Commodity Exchange Act would give the government direct control over specific crypto transactions and exchanges.
Legislators from both parties have introduced a bill that would give the Commodity Futures Trading Commission (CFTC) more authority to regulate crypto spot markets.
The Digital Commodity Exchange Act of 2022 (DCEA) was introduced on Thursday by Reps. Glenn Thompson, Ro Khanna, Tom Emmer and Darren Soto.
What are Digital Commodities?
There are many definitions of “digital commodities,” but they all fall under one umbrella. Everything that may be possible for possession or transfer between individuals without the need for an intermediary, according to a bill copy.
This term does not include any equity or debt interests or securities. As a result, the Securities and Exchange Commission would be able to continue to monitor certain areas of the crypto market.
According to this plan, only a CFTC-registered exchange could trade in these digital commodities due to rigorous controls. This includes the need to store consumer coins in authorized custodians, protect customer assets, and avoid mixing customer and company monies.
Ex-Rep. Michael Conaway first proposed the DCEA in 2020 and revised it for this year’s bill to include new language (R-Texas). Thompson is the ranking member of the House Agriculture Committee, which proposed an amended version of the bill in 2013.
When he appeared before the CFTC’s chair Rostin Behnam in March, Thompson said that he was still working on the legislation.
DCEA Bill Completion
After many years of effort, Thompson confirmed Thursday’s completion of the measure.
There is still a lot of regulatory work to work on, but closing the spot-market difference is an important step. Thompson looks forward to working with his colleagues to bring better clarity to crypto users and creators. He also hopes to see it go through the legislative process as quickly as possible,.
Consumer protection, transparency, and accountability must be the Congress’s top priorities while creating and trading digital commodities.
