U.S. Congressional Committee Urges CFTC to Clarify Bitcoin Regulation Policy

Rage Review : After a long US presidential election, the US Congressional Committee hopes that the Commodity Futures Trading Commission (CFTC) will clarify the digital currency regulatory policy, which can not only strengthen emerging technologies, but also protect participants in emerging markets. Blockchain is an emerging technology that can have a huge impact on the capital and hedging markets supervised by the CFTC and other regulatory agencies.

Translation: Nicole

The United States House of Representatives Agriculture Committee has sent a letter to the Commodity Futures Trading Commission (CFTC), suggesting that the commission clarify its digital currency regulatory policy after Donald Trump is elected as the next president of the United States of America.

K.Conaway

On November 18, the Chairman of the Congressional Committee, Mr. K. Conaway, wrote in a letter:

"Last week, the American people chose a new direction for our country. With that in mind, I am writing to follow up on the Republican Conference's recent letter regarding 'midnight rulemaking' and to extend our request that no controversial rules be introduced at the end of your term."

Conaway urged the CFTC to postpone work on “contentious rulemaking,” adding that it would be helpful to finalize non-contentious rules and orders and focus on market surveillance, enforcement activities and the agency’s other day-to-day work.

When it comes to digital currencies like Bitcoin, Conaway said the CFTC should clarify regulations, which would not only strengthen new technologies but also protect participants in emerging markets.

He wrote:

“Many of the steps the Commission has taken can provide greater clarity around digital currency regulation. Providing greater certainty to the public will help strengthen this new technology while protecting participants in emerging markets.”

In a ruling last September, the CFTC officially declared that Bitcoin and other virtual currencies are defined as commodities.

CFTC Enforcement Director Aitan Goelman said at the time:

“While there are many surprises to come around Bitcoin and other virtual currencies, innovation cannot keep participants in commodity derivatives markets from playing by the same rules.”

In addition, the CFTC has also been paying attention to Bitcoin's underlying blockchain technology. In January, the CFTC held a public meeting to discuss the potential application of blockchain technology in the derivatives market. In April, CFTC Commissioner J. Christopher said that blockchain is an emerging technology that can have a huge impact on the capital and hedging markets supervised by the CFTC and other regulators.