Bipartisan Regulation 🤝

Bipartisan Regulation

Speaking of crypto regulation, the US Senate might be close to passing it for the first time ever. This isn’t a joke bill either, with heavy bipartisan support existing. The Senate Agriculture Committee is planning to propose legislation that would assign oversight of Bitcoin and Ethereum to the Commodity Futures Trading Commission, which regulates derivatives like futures and swaps. This is important because there has been a battle between federal agencies on who should be in charge of jurisdiction due to the possible benefits. Crypto is a growing beast and having that responsibility would provide them with bigger budgets to work with. All of a sudden, there’s a turf war between the SEC, the Federal Reserve, and the CFTC, but this bill seems to have the most potential out of previous ones.

If this bill passes, digital commodity platforms would have to register as trading facilities or brokers. Crypto exchanges like Coinbase and FTX fall under this definition, and they would have to monitor trading while protecting investors from assets that could undergo market manipulation. Those are basics though, and if the CFTC gets jurisdiction like what’s currently proposed, they will have to write a whole new set of rules to protect investors. The timetable for this would be unknown, and the rules might not succeed when executed. It’s important to note that because regulation is inevitable, crypto companies are looking for the agency that will have less of an impact on them. Interestingly enough, Coinbase and FTX have been lobbying for Congress to create this digital commodity category and have the CFTC run it. This is because commodities are a broader term that don’t face full regulation, and the CFTC rules will likely be easier to comply with than the SEC, where they face securities law. Bitcoin and Ethereum haven’t reacted much, but further negotiations will decide if they get what they want.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

NASA Plans Ahead 🚀

NASA has made significant progress towards testing a new asteroid prevention defense nicknamed DART.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying, holding or investing in digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC.

The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.