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Cryptocurrency law is a “pivotal step,” but more information is needed on “digital commodity”: Sheila Warren

Sheila Warren, the chief executive officer of the Cryptocurrency Innovation Council, stated that the Digital Commodities Consumer Protection Act, which is currently being considered by lawmakers in the United States, was a “pivotal step” towards achieving regulatory clarity, but she recommended changes to determine the role that authorities will take on digital assets.

In the written testimony that she submitted ahead of the hearing on the bill that took place on Wednesday with the Senate Agriculture Committee, Warren said that she had a positive overall opinion of the proposed legislation. According to the chief executive officer of the Crypto Council, the text of the Digital Commodities Consumer Protection Act did not adequately specify the types of trading activities that were authorised. According to Warren, it would make it possible to trade in digital assets that are “not readily susceptible to manipulation.” As a result, it is possible that the Commodity Futures Trading Commission, also known as the CFTC, could have its own interpretation, which would be in contrast to that of the Securities and Exchange Commission, also known as the SEC.

Warren predicts CFTC to be incharge of cryptocurrency spot market
Warren predicts CFTC to be incharge of cryptocurrency spot market

Warren in an interview said that the bill, if passed, would allow the CFTC significant jurisdiction over the cryptocurrency spot market in the event that it is enacted. She said that new legislative and regulatory procedures would likely be necessary in order to define the role of the SEC in the passage of such regulations given the possibility of a change in leadership after the midterm elections in 2022. She indicated this was likely to be the case.

In her written statement, Warren added that the Cryptocurrency Industry Association (CCI) supported the provisions of the bill that aimed to establish consumer protection standards such as transparency requirements for financial tools and products in the blockchain and cryptocurrency space. These provisions were included in the bill. A report on underprivileged areas that are connected with digital assets must also be submitted as a requirement of the Act.

After exploring central bank digital currencies and promoting the adoption of blockchain technology while serving as the head of data, blockchain, and digital assets at the World Economic Forum, Warren resigned from that position in February to take the helm as chief executive officer of the Crypto Council for Innovation. Coinbase, Gemini, Fidelity Digital Assets, Paradigm, Ribbit Capital, Andreessen Horowitz, and Block are among the organisations that have shown their support for the CCI since its formation in April 2021. The group has mostly concentrated its efforts on addressing problems that are associated with the usage of cryptocurrencies and harmonising relevant policies in both the United States and Europe.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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