2 New Bills Ask CFTC to Clarify Crypto Regulation, Prevent Price Manipulation

Two bills introduced in the U.S. Congress on Wednesday seek to push the Commodity Futures Trading Commission (CFTC) to clarify the regulation of cryptocurrencies, prevent price manipulation, boost acceptance of blockchain technology and, ultimately, make U.S. cryptocurrency businesses more globally competitive.

• The bills were both introduced by Rep. Darren Soto (D-Fla.) and co-sponsored by bipartisan crypto-friendly congressmen in the Congressional Blockchain Caucus.
• The newly proposed pieces of legislation would, if passed, provide the CFTC with greater regulatory authority over cryptocurrency. It comes as the regulators at the Securities and Exchange Commission (SEC) and CFTC vie for control of cryptocurrency regulation and seek to define spheres of control in the cryptocurrency industry.
• The Virtual Currency Consumer Protection Act of 2021 calls on the CFTC, in conjunction with the heads of the SEC and other relevant federal agencies, to produce a cryptocurrency report that aims to promote “fair and transparent virtual currency markets by examining the potential for price manipulation.”
• The second bill, the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2021, which was co-sponsored by Rep. Tom Emmer (R-Minn.), similarly pushes the CFTC to “promote United States competitiveness in the evolving global virtual currency marketplace,” specifically by issuing clarity on cryptocurrency regulation and, if deemed appropriate, suggesting legislative changes.
• This is the third iteration of the two bills, which were both first proposed in 2018.