Crypto Rules: A New Plan for Fair Play

The Senate Agriculture Committee has unveiled a new plan to make crypto trading fairer. The proposal aims to empower the Commodity Futures Trading Commission (CFTC) with more authority to oversee parts of the crypto market. The plan is titled the "Digital Commodity Intermediaries Act."

Key Objectives of the Plan

• Address Common Issues in Crypto Trading
• Account freezes
• Delayed withdrawals

• Unclear complaint paths

• New Office for Retail Traders
• Reports directly to the CFTC chair
• Specific duties to help traders resolve issues

• Funding Mechanism
• CFTC to collect fees from registered crypto brokers and exchanges

• Initial funding of $150 million to kickstart operations

• Decentralized Finance (DeFi) Regulations
• Defines DeFi and sets boundaries
• Ensures no control over user funds or transactions
• Shifts compliance focus to operational facts rather than marketing labels

Challenges and Future Steps

• Success depends on political alignment and quick hiring of the right personnel.
• The Senate Agriculture Committee will discuss the plan on January 27.
• The Senate Banking Committee will also have a role in the future.