Sheila Warren, CEO of the Crypto Council for Innovation, said the Digital Commodities Consumer Protection Act currently being considered by US lawmakers was a “critical step” towards regulatory clarity, but recommended changes to enhance its role. determine which authorities will take on digital assets.
In written testimony to a hearing on the bill with the Senate Agriculture Committee on Wednesday, Warren said the proposed legislation should better define a “digital commodity” and security rather than leave the matter to regulators or US courts. According to the CEO of the Crypto Council, the Digital Commodities Consumer Protection Act also failed to clarify what trading activity was allowed on the basis of being “easily amenable to manipulation”, allowing the Commodity Futures Trading Commission, or CFTC, to be interpretation as opposed to that of the Securities and Exchange Commission, or SEC.
“The bill leaves it to the agencies and the courts to determine whether a digital asset, other than Bitcoin and Ether, is a security or not,” Warren said. “To date, this approach has not worked well, with significant implications for consumers, which is why the industry has made numerous calls for proactive regulation rather than regulation through enforcement.”
Speaking to TBEN, Warren said the bill, if passed, would grant the CFTC broad authority over the crypto spot market. She said additional legislation and regulatory processes are likely needed to clarify the SEC’s role — a sentiment echoed recently by Chair Gary Gensler — and added that there was “a very tight window” to pass such laws. given the potential change in leadership after the 2022 midterm elections.
“We strongly believe that any crypto legislation should be twofold in nature.”
Warren added in her written statement that the CCI supported provisions in the bill aimed at establishing consumer protection standards, such as transparency requirements for financial instruments and products in the crypto and blockchain space. The legislation also requires a report on disadvantaged communities involved in digital assets.
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A former head of data, blockchain and digital assets at the World Economic Forum, Warren explored the central bank’s digital currencies and promoted the adoption of blockchain technology, leaving in February to become the CEO of the Crypto Council for Innovation. become. Founded in April 2021, the supporters of the CCI include Coinbase, Gemini, Fidelity Digital Assets, Paradigm, Ribbit Capital, Andreessen Horowitz, and Block. The organization has focused on supporting issues related to the use of cryptocurrencies and harmonizing related regulations in the United States and Europe.