Crypto Bill Needs Clarification on ‘Digital Commodity’ – Sheila Warren

Sheila Warren, CEO of the Crypto Council for Innovation, said the Digital Products Consumer Protection Act currently being reviewed by US lawmakers is a “critical step” in achieving regulatory transparency, but officials recommended changes to define the role of digital assets.

In written testimony for Wednesday’s hearing on the bill with the Senate Agriculture Committee, Warren said the proposed legislation would need to better define “digital commodities” and security, rather than leaving the issue to regulatory agencies or US courts. According to the CEO of the Crypto Council, the Digital Commodities Consumer Protection Act, which goes beyond clarifying what trading activity is “fraud-prone,” allows the Commodity Futures Trading Commission, or CFTC, to have its own interpretation. Unlike the Securities and Exchange Commission or SEC.

“The bill leaves it up to the agencies and the courts to decide whether any digital asset other than Bitcoin and Ether, is a security or not,” Warren said. “So far, this approach has not produced good results with significant implications for consumers and is why the industry has made many calls for pre-regulation rather than mandatory regulation.”

Speaking to Cointelegraph, Warren said the bill, if passed, would give the CFTC broader powers over the crypto space market. She said additional rules and regulatory procedures may be needed to clarify the SEC’s role — a proposal recently floated by Chairman Gary Gensler — adding that there is a “very narrow window” to pass such rules, with a possible change in leadership following the 2022 midterms. Choices

“We strongly believe that any crypto legislation should be bipartisan in nature.”

In her written statement, Warren stated that the CCI supports provisions that aim to establish consumer protection requirements for financial instruments and products in the crypto and blockchain space. The law requires reporting of communities that are not connected to digital assets.

Related: America’s uniqueness may be tested as digital assets gain a foothold around the world – Sheila Warren

As the former head of data, blockchain and digital assets at the World Economic Forum, Warren became CEO of the Crypto Council for Innovation in February, researching central bank digital currencies and promoting blockchain technology. Founded in April 2021, CCI’s backers include Coinbase, Gemini, Fidelity Digital Assets, Paradigm, Ribbit Capital, Andreessen Horowitz and Block. The organization is focused on supporting issues related to the use of cryptocurrencies and the harmonization of related regulations in the United States and Europe.