New legislation introduced in the U.S. Senate proposes to make the Commodity Futures Trading Commission (CFTC) the sole regulator of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
The legislation would give the CFTC exclusive jurisdiction over cryptocurrencies and label the digital assets as “commodities.”
It would also require cryptocurrency companies to register with the CFTC, including brokers, custodians and exchanges.
That registration would come with requirements to maintain fair pricing, prevent market manipulation, avoid conflicts of interest, and maintain “adequate financial resources.”
Supporters of the bill argue that it provides much needed regulatory oversight of the cryptocurrency market and provides clarity by placing the sector under a single regulator.
The bill is the latest in a growing list of legislation that aims to clarify the rules around cryptocurrencies, with lawmakers in both houses of Congress working on measures to regulate the market for digital coins and tokens.
However, the window for passing legislation into law is closing ahead of the upcoming November midterm congressional elections.
The push to regulate cryptocurrencies comes amid several high-profile bankruptcies and failures in the sector in recent months, as well as a plunge in prices for Bitcoin, Ethereum and other digital assets.
