US lawmakers on both sides of the political aisle want Commodity Futures Trading Commission To do more to control cryptocurrencies, according to a Bloomberg report on Wednesday (January 12).
In her letter to the commission chair, Democrats and Republicans on the Senate and House of Representatives Agriculture Committees said that oversight has a “critical role to play” when it comes to keeping cryptocurrencies from being misused or engaging in nefarious financial activities.
Lawmakers wrote, including Debbie Stabino, the top Democrat on the Senate Agriculture Committee, and John Bozeman, the highest Republican member of the committee.
David Scott, the Democratic chair of the House Agriculture Committee, and the prominent Republican member, Glenn Thompson, as the letter signed. The Committee on Agriculture oversees the CFTC, which has its fingers on the $610 trillion global derivatives sector.
Lawmakers continue to debate and fight with regulators over whether crypto tokens are securities that should be supervised by the Securities and Exchange Commission, a move supported by the Chairman of the Board of Directors of the Securities and Exchange Commission (SEC). Gary Gensler.
The letter says that bitcoin and ether are two commodities that fall under the CFTC’s purview, given their status as the largest cryptocurrency. The CFTC has been keeping a close eye on the cryptocurrency market since it allowed Bitcoin futures to begin trading in 2017.
In their letter, the lawmakers also asked the chair of the Commodity Futures Trading Commission Rustin Behnam To share the steps the agency is taking to protect consumers and businesses with other regulators when it comes to decentralized finance (DeFi).
Related: Hong Kong weighs crypto and stablecoin regulations
Meanwhile, the Hong Kong Monetary Authority (HKMA) is studying its own regulations for crypto and stablecoins and plans to launch a framework by July, in accordance with the recommendations of the Financial Stability Board (FSB), an international organization aimed at global financial stability.
The FSB is likely to create or amend the regulatory framework for crypto and stablecoins by July, according to the HKMA discussion paper.