US lawmakers are set to discuss digital asset spot markets during a hearing to be held by the House Agriculture Committee on June 6. The committee has jurisdiction over the Commodity Futures Trading Commission (CFTC), which has been exercising its jurisdiction through enforcement actions and public statements over the past year. The hearing will be titled “The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets.”
The House Agriculture Committee has also begun an effort to work with the House Financial Services Committee, which has oversight over the Securities and Exchange Commission (SEC). In a joint hearing earlier this month titled “The Future of Digital Assets: Measuring the Regulatory Gaps in the Digital Asset Markets,” former CFTC Chair Timothy Massad told lawmakers that he would prefer a system where both agencies work together. He suggested that the industry could pay for a self-regulatory organization (SRO) to facilitate collaboration between the two agencies.
Digital Commodity Exchange Act
Republican House Agriculture Chair Glenn “GT” Thompson introduced the bipartisan Digital Commodity Exchange Act last year. The act would give the CFTC the authority over a new term coined “digital commodities.” Meanwhile, House Financial Services Committee Chair Patrick T. McHenry has been working on bills to regulate crypto, working with Rep. Maxine Waters, D-Calif, on a stablecoin bill. However, this has led to a divide, with two stablecoin bills emerging ahead of a House Financial Services Committee hearing on May 18, one from Waters and another from McHenry.
No Witnesses Listed Yet
While no witnesses have been listed yet for the June 6 hearing, it is clear that US lawmakers are taking an active interest in digital asset spot markets. The hearing will provide an opportunity for lawmakers to discuss regulatory gaps and provide clarity for market participants. It remains to be seen whether the CFTC and SEC will work together to regulate the market, or whether the industry will be required to fund an SRO to facilitate collaboration between the two agencies.
Overall, the hearing will shape the future of digital asset spot markets in the US, and is an important step towards creating a regulatory framework that protects investors while encouraging innovation and growth in the market.