The Senate Committee on Agriculture, Nutrition, and Forestry held a hearing on Wednesday where Chairwoman Senator Debbie Stabenow stressed the urgent need for robust regulation in the crypto market. The discussion focused on investor protection, market integrity, and the necessity of federal oversight for digital commodities like bitcoin and ethereum.
Senate Committee Highlights Need for Federal Crypto Oversight
On Wednesday the Senate Committee on Agriculture, Nutrition, and Forestry held a hearing on “Oversight of Digital Commodities.” Chairwoman Senator Debbie Stabenow (D-MI) led the discussion, focusing on the urgent need for robust regulation in the crypto market.
The hearing addressed significant investor losses in 2022, widespread hacking incidents, and the collapse of major crypto firms. Senator Stabenow highlighted the absence of federal oversight for digital commodities like bitcoin and ethereum. She stressed the importance of immediate regulatory action to protect investors and maintain market integrity.
“As institutional investors pile into bitcoin and ether derivatives and exchange-traded products, the interconnection between crypto and traditional financial markets is increasing,” she said, asserting:
But the trading of digital commodities like bitcoin and ethereum is not overseen by any federal regulator. These and other digital assets that are not securities account for most of the value traded in crypto markets.
Stabenow has proposed bipartisan legislation to empower the Commodity Futures Trading Commission (CFTC) with regulatory authority over digital commodities.
The senator from Michigan outlined three key pillars for future legislation. The first is ensuring similar rules for similar risks, where crypto firms must safeguard customer assets, maintain sufficient capital reserves, and adhere to rigorous cybersecurity standards, similar to traditional financial institutions. The second pillar focuses on protecting retail customers by providing accurate investment information and ensuring fair market practices free from conflicts of interest. The third pillar emphasizes securing adequate, permanent funding for the CFTC to oversee the evolving digital commodities market and uphold its broader regulatory responsibilities.
“Our colleagues in the House have recognized that protecting customers and providing clear rules of the road is not a partisan issue and have passed crypto market structure legislation out of their Chamber,” she noted, adding:
I am confident we can come together to pass legislation that brings greater integrity to the crypto market.
Do you think Congress will soon pass legislation that brings greater integrity to the crypto market? Let us know in the comments section below.
Source: Bitcoin
