U.S. Senators introduced the Digital Goods Consumer Protection Act of 2022 to give the Commodity Futures Trading Commission (CFTC) “exclusive jurisdiction over the digital goods spot market.”
Digital Consumer Protection Law
U.S. Senators Debbie Stabenow (D-MI), John Boozeman (R-AR), Corey Booker (D-NJ), and John Thune (R-SD) introduced the Digital Consumer Protection Act of 2022 on Wednesday.
The bipartisan bill aims to give the Commodity Futures Trading Commission (CFTC) “new tools and powers to regulate digital goods,” according to a statement on the bill by the U.S. Senate Committee on Agriculture, Food and Forestry.
Senator Stabenov commented:
One in five Americans have used or traded digital assets, but these markets lack the transparency and accountability they expect from our financial system. Too often, this puts Americans’ hard-earned money at risk.
“That’s why we’re addressing legal gaps and requiring these markets to operate under clear rules that protect customers and keep our financial system safe,” she added.
A review of the legislation published by the committee said the bill “closes regulatory gaps by requiring all digital goods platforms, including merchants, brokers, dealers and custodians, to register with the CFTC.” It also “authorizes the CFTC to charge users on digital goods platforms in order to fully fund its oversight of the digital goods market.” In addition, the bill “recognizes that other financial agencies have a role to play in regulating digital assets that are not commodities, but function more like securities or forms of payment.”
Senator Buzman noted:
Our bill will give the CFTC exclusive jurisdiction over the digital goods spot market, leading to increased consumer protection, market integrity, and innovation in the digital goods space.
“This legislation will provide the CFTC with the necessary market visibility to respond to emerging risks and protect consumers, as well as provide regulatory certainty for digital commodity platforms,” Senator Thune explained.
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