The U.S. Senate Agriculture Committee has made significant strides by unveiling a discussion draft of regulations regarding the cryptocurrency sector, moving Congress closer to establishing a framework for regulation.

Republican Chair John Boozman and Democrat Senator Cory Booker released the draft on Monday, which has sections under negotiation.

The primary goal of the proposed bill is to delineate the powers held by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in managing cryptocurrency. While Congress holds the authority to set these regulatory parameters, both agencies have provided guidance to cryptocurrency firms during the previous administration’s deregulation phase.

Boozman remarked, “The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers.”

Chairman @JohnBoozman and @SenBooker release a bipartisan market structure discussion draft. Learn more here ⬇️ https://t.co/3OTvv8LaL0 Image

Booker emphasized that the draft will empower the CFTC with new regulatory authority over the digital commodity spot market, create enhanced protections for consumers, and ensure that the agency has the necessary resources to oversee this expanding market.

Furthermore, a similar piece of legislation, known as the CLARITY Act, had already passed through the House in July, granting the CFTC a pivotal role in overseeing the cryptocurrency industry.

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Tags: #Law #Congress #Senate #CFTC #Bills #Regulation