The US Congress is looking more seriously into the regulation of the cryptocurrency market. Members of the House will table two new bills that could help in consumer protection and make the US market more competitive.
One of the bills directs the Commodity Futures Trading Commission (CFTC) to study regulations in other countries and help in keeping the US competitive while the other allows the CFTC to describe how crypto price manipulations could happen and recommend appropriate legislation.
The US Wants to Protect Consumers
Though none of the two bills provide any specifics into how the markets will be regulated, the first bill entrusts the power to study crypto price manipulations to the Commodity Futures Trading Commission. The CFTC will recommend appropriate regulations to lawmakers upon completing its study.
In a statement, Democrat Rep. Darren Soto from Florida and Republican Rep. Ted Budd from North Carolina said:
“Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth. That’s why we must ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors, while also promoting an environment of innovation to maximize the potential of these technological advances.”
Staying Ahead in the Game
The second bill called the U.S. Virtual Currency Market, and Regulatory Competitiveness Act of 2018 also involves the CFTC. The bill seeks to keep the US more competitive in the global industry as the CFTC will recommend regulatory changes based on a comparative study of regulations abroad. It seeks to ensure that burdensome regulations that inhibit innovation are replaced with alternative regulations.
Both the bills entrust the responsibility of managing the industry to the CFTC instead of the SEC, as the lawmakers are looking at cryptocurrencies as commodities, not securities. The agency will also examine the costs and benefits of a new regulatory structure that could end up replacing the current money transmission system.