As a direct response to the shocking failure of FTX, US senators Debbie Stabenow and John Boozman have reaffirmed their commitment to releasing the final version of the Digital Commodities Consumer Protection Act 2022 (DCCPA) in early 2022.
Since most people think former FTX CEO Sam Bankman-Fried strongly supported the DCCPA bill, the cryptocurrency community was initially unsure how senators would react to the FTX crisis.
In a statement released on November 10, however, members of the United States Senate Committee on Agriculture, Nutrition, and Forestry confirmed their plans to increase federal regulation of the digital asset industry. They cited events from last week as evidence that such action is required.
The Crypto Bill Has the Support of Bankman-Fried
It is widely believed that Bankman-Fried supports crypto legislation. After attending several Senate hearings, he wrote a blog post on October 19 titled “Possible Digital Asset Industry Standards.”
It is still being determined where the DCCPA stands in the legislative process, and it was not disclosed when the bill would be made public for Senate consideration.
The DCCPA bill was officially introduced in the United States Congress on August 3, 2022.
If the Dodd-Frank Wall Street Reform and Consumer Protection Act (DCCPA) becomes law, the Commodity Futures Trading Commission (CFTC), one of the two US market regulators, will have expanded authority over the financial services industry.
The bill still needs to be approved by the Senate and House of Representatives, and then signed by President Joe Biden, before it becomes law.
Sen. Patrick Toomey tweeted:
It seems FTX’s foreign exchange was acting in ways that put customer funds at significant risk.
Given that traditional financial exchanges generally operate much differently, I imagine many FTX customers were not well informed (if at all) about the firm’s debatable actions.
— Senator Pat Toomey (@SenToomey) November 10, 2022
Sen. Elizabeth Warren tweeted:
The collapse of one of the largest crypto platforms shows how much of the industry appears to be smoke and mirrors. We need more aggressive enforcement and I’m going to keep pushing @SECGov to enforce the law to protect consumers and financial stability.https://t.co/uOPi8MV25J
— Elizabeth Warren (@SenWarren) November 10, 2022
US Regulators Blamed for Recent Events in the Crypto Space
Several crypto executives, including Brian Armstrong, the CEO of Coinbase, reacted negatively to Warren’s tweet. According to them, the lack of clear rules for businesses to follow has driven crypto traders offshore.
The US Securities and Exchange Commission (SEC)’s chairman, Gary Gensler, has stated on multiple occasions that he believes cryptocurrency exchanges should register as national securities exchanges, but he has avoided saying whether the SEC would require companies to do so.
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