U.S. Senate Committee on Agriculture, Nutrition, and Forestry Chairman John Boozman opened a hearing focused on the federal oversight of digital commodities. The session titled "Stakeholder Perspectives on Federal Oversight of Digital Commodities" was convened to address the regulatory framework needed for digital assets.
Chairman Boozman highlighted the growing significance of digital commodities in financial markets, noting that approximately 70% of traded digital assets are classified as such, with around 55 million Americans engaging with crypto. Despite its popularity, Boozman pointed out that the U.S. lacks comprehensive federal regulation for these markets.
"The U.S. currently lacks comprehensive federal regulation of the digital commodity markets," Boozman stated. He emphasized that this regulatory gap poses risks to American economic interests and creates uncertainty among market participants and innovators.
Boozman argued for a clear regulatory approach led by the Commodity Futures Trading Commission (CFTC), which already holds enforcement authority over these markets. "The CFTC – and only the CFTC – should regulate the spot trading of digital commodities," he said.
The chairman drew parallels between current needs and past regulatory frameworks like those established by the Dodd-Frank Act for swaps markets. He advocated for collaboration between agencies such as the CFTC and SEC to develop effective regulations without creating jurisdictional conflicts.
He expressed his commitment to working alongside Ranking Member Klobuchar and other committee members in a bipartisan manner to craft legislation ensuring robust retail protections while fostering innovation within U.S borders.
The hearing included testimonies from former CFTC Chairmen, representatives from derivatives self-regulatory organizations, and an association head representing diverse crypto stakeholders.
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