Today, Republican Leader of the House Agriculture Committee, Glenn 'GT' Thompson (R-PA), released a discussion draft of the Digital Commodity Exchange Act of 2021—a blueprint for the regulation of digital commodity markets—to solicit feedback before formally introducing the legislation.
"Because of its oversight of commodity markets, the House Agriculture Committee plays a critical role in the exciting future of digital commodities. We have an opportunity and a responsibility to be leaders in the digital assets space to protect consumers, foster innovation, and reduce regulatory burdens," said Thompson. "The Digital Commodity Exchange Act can tackle those challenges, and I'm asking for the feedback of stakeholders, regulators, and my colleagues in Congress to ensure we advance the best possible framework as American innovators build the next generation of digital infrastructure."
In an open letter to stakeholders, soliciting feedback, Mr. Thompson stated, "it is possible to bring effective oversight to digital commodity markets without diminishing the innovation and creativity that has established the U.S. as a global leader in this field."
The Digital Commodity Exchange Act of 2021:
Fills gaps between the Commodity Futures Trading Commission's (CFTC) and the Securities and Exchange Commission's (SEC) regulation of digital asset markets;
Creates a voluntary registration framework to regulate trading venues that list digital commodities such as Bitcoin for public trading;
Provides a regulated process for pre-sold digital commodities to become publicly available for trading without sacrificing protections for retail consumers, and;
Creates a voluntary registration framework to regulate the issuers of asset-backed stablecoins to ensure that issuers are known, accountable, and holding funds in the amount and manner promised.
For a summary of the Digital Commodity Exchange Act, click here.