As the FTX cryptocurrency exchange headed for bankruptcy last week, Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., and Sen. John Boozman, R-Ark., the ranking member of the committee, each issued a statement saying that Congress must regulate the digital commodities market.
Associated Press reported over the weekend that $477 million was missing from the FTX exchange. Another $186 million had been moved out of FTX accounts as well. The bankruptcy filing reported FTX's assets somewhere between $10 billion and $50 billion.
The Senate Agriculture Committee has jurisdiction over the Commodity Futures Trading Commission. The committee has spent the past two years working on the Digital Commodities Consumer Protection Act to regulate cryptocurrencies.
Stabenow said, "The recent collapse of a major cryptocurrency exchange reinforces the urgent need for greater federal oversight of this industry. Consumers continue to be harmed by the lack of transparency and accountability in this market. It is time for Congress to act."
"The committee, remains committed to advancing the Digital Commodities Consumer Protection Act to bring necessary safeguards to the digital commodities market. I am working closely with ranking member Boozman, our committee members, and financial regulators to finalize and prepare this legislation for a committee vote.
"Until legislation is enacted, I encourage all financial regulators to use their current authorities to the fullest extent to regulate and prosecute misconduct in these markets," Stabenow said.
Boozman said, "The events that have transpired this week reinforce the clear need for greater federal oversight of the digital asset industry."
"That has been our goal since we began drafting the Digital Commodities Consumer Protection Act of 2022. Working closely with our colleagues, financial regulators, academics and a wide array of industry participants, we introduced a robust bill that aims to bring transparency and accountability to the market.
"In light of these developments, we are taking a top-down look to ensure it establishes the necessary safeguards the digital commodities market desperately needs.
"Chairwoman Stabenow and I remain committed to advancing a final version of the DCCPA that creates a regulatory framework that allows for international cooperation and gives consumers greater confidence that their investments are safe.
"While our legislative work continues, the Commodities and Futures Trading Commission already has the ability to regulate and prosecute fraud, manipulation and abuse. I strongly encourage them to actively exercise those authorities when necessary," Boozman said.
-Associated Press: Funds vanish at bankrupt crypto exchange FTX; probe underway https://apnews.com/…
-Explainer: What's happening at bankrupt crypto exchange FTX? https://apnews.com/…
-S.4760 -- Digital Commodities Consumer Protection Act of 2022 https://www.congress.gov/…
CFTC Ag Advisory Committee to Meet in December
The Commodity Futures Trading Commission Agricultural Advisory Committee (AAC) will hold an in-person public meeting on Wednesday, December 7 from 9 a.m. to 12:45 p.m. (ET) at the CFTC headquarters in Washington.
CFTC Chairman Rostin Behnam noted in a media advisory that this will mark the first AAC meeting with these members under his sponsorship.
At the meeting, the AAC will focus on topics related to the agricultural economy, including geopolitical and sustainability issues, as well as recent developments in the agricultural derivatives markets. The AAC will also address procedural matters, including topics of discussion on a forward-looking basis.
Seating for the public may be limited due to the Centers for Disease Control's COVID-19 Community Level, but the meeting will also be webcast.
-Commodity Futures Trading Commission -- The Agricultural Advisory Committee to Meet on December 7 https://www.cftc.gov/…
Jerry Hagstrom can be reached at firstname.lastname@example.org
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