The US Commodity Futures Trading Commission’s (CFTC) Market Risk Advisory Committee (MRAC) held its first meeting with its new members on September 28. In her opening remarks, Commissioner Kristin N. Johnson, the committee’s sponsor, went through a long list of issues to consider, but spent most of her time talking about digital assets.
This is the first MRAC meeting under Johnson’s leadership. He summarized the CFTC’s actions in the cryptocurrency space, including the controversial case of Ooki DAO, the Recent Comprehensive Framework of the White House for the Responsible Development of Digital Assets and the CFTC Roundtable on Non-Brokerage held earlier this year.
Research, monitoring and new guidance can bring clarity and certainty to market participants, Johnson said. The cryptocurrency industry and traditional market participants “want a clear indication of the Commission’s next steps,” he added.
I’m honored to join my first meeting as an official member of …@CFTC‘sâ© Market Risk Advisory Committee tomorrow at 9:30am. Thank you…@CFTCjohnsonâ© for including me in the discussion. https://t.co/JdR2Ni7Woe
— Kristin Smith (@KMSmithDC) September 28, 2022
Next, Johnson turned his attention to the Digital Commodities Consumer Protection Act of 2022 (DCCPA), introduced by Senate Agriculture Committee members Debbie Stabenow and John Boozman. The Senate Agriculture Committee oversees the CFTC. The bill, he noted, expands the definition of commodity in the Commodity Exchange Act to include digital commodities and requires platforms offering digital commodities to register with the CFTC.
Also, the DCCPA would require market participants to join the self-regulatory organization for derivatives markets, the National Futures Association, which would give clients recourse to the CFTC Redress Program, which is:
“A cost-effective way for customers to address their complaints with a registrar without having to hire an attorney and engage in costly litigation or arbitration.”
Additionally, the DCCPA “can be transformative” in the way it fosters the inclusion of underbanked and underrepresented communities in traditional financial markets, Johnson said.
The DCCPA is one of several bills in Congress that would regulate digital assets. Others are the Lummis-Gillibrand Responsible Financial Innovation Act and the Digital Products Exchange Act of 2022 in the House of Representatives.
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