The US Senate Banking Committee published its version of proposed legislation on market structure and digital assets and issued a request for information. FIA responded with its views including commentary on the role of the CFTC, the importance of market intermediaries and other topics.
FIA underscored its strong support for the ongoing legislative efforts to craft a regulatory regime that will foster healthy, vibrant digital asset markets, just as U.S. derivatives markets have become the envy of the world in large part because of their clear, sensible, and flexible regulatory framework.
Importantly, FIA believes that the CFTC should have regulatory authority over spot digital commodities.
The response also notes it is critical that market structure legislation strikes the appropriate balance in allocating jurisdiction in a manner that reflects the CFTC's and SEC's respective specialized expertise, experience and statutory remit. This will help avoid past experiences where the lack of clarity regarding the allocation of jurisdiction between the two agencies has resulted in significant confusion for digital asset market participants and end users, regulatory overreach, and a general stifling of innovation in the digital asset space.
Read full response here.
