The CEO of Crypto Council for Innovation (CCI), Sheila Warren, seeks regulatory clarity for digital commodities amid calls for authorities to consider changes to the sector.
CCI Founder Wants U.S. Senate to Clearly Define “Digital Commodity”
U.S. lawmakers are currently considering the Digital Commodities Consumer Protection Act. Accordingly, Warren commended the lawmakers for taking the right approach.
However, she recommended some changes to the new guidelines that the authorities should consider for regulating digital assets. Warren wants lawmakers to define a digital commodity in a written document to the Senate Committee on Agriculture.
She wants the legislators to clearly define it rather than hand it over to regulatory agencies. Sheila added that the new bill failed to state the type of trading activity allowed that is prone to manipulation.
This avoids diverse interpretations from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). She noted that the bill leaves it to the agencies to have their own interpretation of what constitutes commodities or securities. The implications will be on consumers who find it difficult to make investment choices.
According to her, the current approach of the two agencies fell short of achieving its aims. That is why the industry is clamoring for comprehensive regulations in place of “regulations by enforcement.”
According to the CCI founder, the bill, if passed, presents another dilemma between the CFTC and the SEC. This would put the crypto spot market under the purview of the CFTC. And this would call for additional legislation to clarify the role of the SEC.
The SEC chairman, Gary Gensler, has previously echoed the same sentiment. The limited time for further deliberation makes this issue a pressing one. Following the 2022 mid-term elections, there is a tight window to pass any new laws due to the possible change of leadership.
Warren noted that the CCI aligns with the content of the bill aimed at entrenching consumer protection. In addition, the bill also addresses the issue of transparency in providing crypto products and services. Furthermore, the new legislation also calls for the inclusion of underserved groups in the digital assets ecosystem.
Warren is an experienced blockchain expert at the World Economic Forum. She has an extensive background in central bank digital currency (CBDC) and blockchain technology adoption.
She left the services of the World Economic Forum to become the CEO of the Crypto Council for Innovation. The association was founded in April 2021 with the support of Gemini, Coinbase, Fidelity Digital Assets, Paradigm, and others.
The United States’ crypto community has been torn between CFTC and SEC roles. Due to the regulatory bodies’ irregular guidelines, many crypto exchanges have had to change. It will be interesting to see how the lawmakers can attend to the issues raised by Warren.