US Congress Set To Vote On A Bill That Will Determine CFTC’s Crypto Authority Powers
U.S Congress members are set to vote on a bill that will delineate the powers of the Commodity Futures Trading Commission (CFTC) authority as regards to the crypto derivatives markets.
For crypto watchers, a crucial moment is in the offing as U.S. Congress members ready themselves preparatory to voting on a bill of great significance to the crypto sector. This bill, the 2019 CFTC Reauthorization Act delineates the process by which regulators are supposed to gather information related to commodity swap and commodity contracts.
As of now, the bill is on its way to the Federal House of Representatives and there will be subjected to a floor vote. The bill came to the house via the House Agriculture Committee, which unanimously approved it. The committee incidentally manages the operations of the CFTC.
The Bill Of Crypto Life
Should it sail through Congress, the bill will make history as the first to specify Congressionally-mandated and digital commodity-tailored requirements on the CFTC. More, the writer of the bill, Rep. Sean Patrick Maloney (D.-NY) says it is now the only crypto derivatives bill to progress past the committee stage, which is quite an achievement.
In a statement attributed to him, Rep. Patrick encouraged members of the U.S. Congress to wise up to the uses and abuses of crypto and to formulate an integrated approach for regulating the use of digital currencies. The bill according to him is necessary to fight manipulation and detect fraud, and properly regulate cryptoassets in the derivatives market.
The provisions of the bill are relatively brief. It states that the CFTC will be made to adopt rules that make it possible for it to glean all manner of useful information related to trading and trader data, as well as any other information related to contract markets with digital commodity underpinnings that the board of trade can access whenever it wishes to. The following paragraph makes the same requirements for swap execution facilities.
CFTC chairman Heath Tarbert recently released a statement in regards to the bill. In this, Tarbet heaped praise on the Agriculture Committee for ensuring the passage of this piece of legislation.
He also underscored the need to keep the derivatives market soundly regulated, because of its importance and the fact that it records daily notional activity whose worth exceeds $4 trillion. This makes it very important to the U.S. economy and according to him directly affects the financial status of all Americans.