Crypto Bill Needs Clarification on “Digital Goods” — Sheila Warren

Sheila Warren, CEO of the Crypto Council for Innovation, said the Digital Goods Consumer Protection Act currently being considered by U.S. lawmakers is an “important step” in achieving regulatory clarity. ‘, but recommended changes to determine the role the authorities will play with respect to digital assets.

Warren said in written testimony at Wednesday’s hearing on the bill with the Senate Agriculture Committee that the proposed law would focus on “digital goods” and security rather than leaving the matter up to regulators and U.S. courts. I said it should be better defined. According to the Crypto Council CEO, the Digital Goods Consumer Protection Act did not make clear what trading activities were allowed on the basis of being “easily manipulated,” so the Commodity Futures Trading Commission ( CFTC) could have their own interpretation. Contrast with the US Securities and Exchange Commission (SEC).

“This bill leaves it to government agencies and courts to determine whether digital assets other than Bitcoin and Ether are securities,” Warren said. “To date, this approach has not worked and has had a significant impact on consumers, which is why the industry has been pushing for active rather than mandatory regulation.”

Speaking to Cointelegraph, Warren said the bill, if passed, would give the CFTC broad powers over the spot cryptocurrency market. Additional legislative and regulatory processes are likely to be required to clarify the SEC’s role, she said, and given that leadership may change after the 2022 midterm elections, such a move is unlikely. It added that there is a “very tight window” to pass such legislation. selection.

“I feel very strongly that cryptocurrency legislation must be bipartisan in nature.”

In a statement, Warren added that the CCI endorsed provisions in the legislation aimed at establishing consumer protection standards, including transparency requirements for financial tools and products in the cryptocurrency and blockchain space. I was. The law also requires reports on underserved communities involved in digital assets.

Related: U.S. exceptionalism may be tested as digital assets find footholds around the world – Sheila Warren

As the former Head of Data, Blockchain and Digital Assets at the World Economic Forum, Warren has explored central bank digital currencies and promoted the adoption of blockchain technology, becoming CEO of the Crypto Council for Innovation in February. . Founded in April 2021, his CCI supporters include Coinbase, Gemini, Fidelity Digital Assets, Paradigm, Ribbit Capital, Andreessen Horowitz and Block. The organization has focused on supporting issues related to the use of cryptocurrencies and harmonizing relevant regulations in the United States and Europe.