Saturday 3 December 2022
Home / none / CFTC Commissioner Kristin Johnson touts DCCPA bill in market risk advisory meeting

CFTC Commissioner Kristin Johnson touts DCCPA bill in market risk advisory meeting

The United States Commodity Futures Trading Commission (CFTC) Market Risk Advisory Committee (MRAC) held its first meeting with its new membership on Sept. 28. In her opening statement, the committee’s sponsor, Commissioner Kristin N. Johnson, ran through a laundry list of issues for consideration, but spent the bulk of her time talking about digital assets.

This is the first MRAC meeting under Johnson’s leadership. She gave a summary of CFTC actions in the crypto space, including the controversial Ooki DAO case, the recent White House Comprehensive Framework for Responsible Development of Digital Assets and the CFTC roundtable on non-intermediation held earlier this year.

Investigation, enforcement and new guidance can give clarity and certainty to market participants, Johnson said. Cryptocurrency industry and traditional market participants “desire a clear indication of the Commission’s next steps,” she added.

Johnson then turned her 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 has oversight over the CFTC. The bill, she noted, expands the definition of commodity in the Commodity Exchange Act to include digital commodities and requires digital commodity platforms to register with the CFTC.

In addition, the DCCPA would require market participants to join the derivatives markets self-regulatory organization, the National Futures Association, which would give customers recourse to the CFTC’s Reparations Program, which is:

“A cost-effective way for customers to address their grievances with a registrant without having to hire a lawyer and engage in costly litigation or arbitration.”

In addition, the DCCPA “may be transformative” in the way it fosters inclusion of underbanked and underrepresented communities in the traditional finance markets, Johnson said.

Related: CFTC labels 34 crypto and forex firms as unregistered foreign entities

The DCCPA is one of several bills in Congress that seeks to regulate digital assets. Others include the Lummis-Gillibrand Responsible Financial Innovation Act and the Digital Commodity Exchange Act of 2022 in the House of Representatives.

Original Article

About Jude Savage

Check Also

The future of smart contract adoption for enterprises

Decentralized finance (DeFi) markets may have cooled down over the past year, but the technology powering these applications continues to advance. In particular, smart contract platforms that enable transactions to take place across DeFi applications are maturing to meet enterprise requirements. While it’s notable that enterprises have previously shown interest in DeFi use cases, smart contract limitations have hampered adoption. A report published by Grayscale Research in March puts this in perspective, noting that “Despite handling millions of transactions per day, smart contract platforms in their current state would be incapable of handling even 10% of the worlds’ internet traffic.” This notion is particularly troublesome considering the market opportunity behind DeFi. For instance, Grayscale Research’s report mentions that DeFi and Metaverse applications combined are likely to have a market capitalization much larger than the current digital asset market. How smart contracts ar..

Leave a Reply

Your email address will not be published. Required fields are marked *