A United States representative has started a debate that seeks to move the jurisdiction of cryptocurrency from the Securities and Exchanges Commission to Commodity Futures Trading Commission. According to Darren Soto, the current administration is not the best considering the way that digital coins work. While acknowledging that his recommendations may raise concerns regarding the jurisdiction of crypto, Soto said that he had studied the way these coins work, and he is convinced that moving them to the recommended commission will have a positive impact to the entire industry.
According to Soto, such a move will bring more transparency to the cryptocurrency world which is always posing new challenges regarding its jurisdiction. He says that he would like to see more clarity introduced to the market, and this cannot happen when the coins are still under the current jurisdiction. According to him, the securities laws can be quite intense, a situation that will hurt the cryptocurrency market. In addition to that, he called for proper implementation of new laws that shield the market from some of the risks that have hindered the use of digital currencies.
The solution
Soto says that he has a solution that will improve the way that cryptocurrencies are regulated. He recommends the establishment of classifications which include jurisdictions. This action will restore confidence in the markets thus making the coins even better. However, he also knows that this is not something that is so easy to implement, but it is possible. In December alone, Soto worked with a colleague called Warren Davidson to craft two bills that seek to regulate these markets. One of the measures requires the CFTC to check the price manipulations of the digital currencies while the other needs the government to mandate research that and provide policies that will ensure it remains competitive.
According to Coin Telegraph, over the past few years, the lawmakers in the United States have intensified their calls to introduce legislation that controls the cryptocurrency markets. The aim is to establish protection of the consumer, a move that Soto believes will make America a leader in this industry. He still holds that CFTC is the most appropriate body to take up matters cryptocurrency, especially when we remember that SEC was at one point trying to suppress its use. This is a debate that is likely to go on for longer and therefore, we can only wait and see how everything folds out, and how it will impact the markets in America and beyond.
