The Commodity Futures Trading Commission (CFTC) can become the direct regulator over bitcoin and ether, according to a new bill introduced in the U.S. Senate.
The bipartisan measure would give the derivatives regulator exclusive jurisdiction over the two most popular cryptocurrencies in the market.
The bill will require companies providing crypto platforms to register with the CFTC, including brokers, custodians and exchanges, to prevent market manipulation and maintain adequate financial resources.
Sponsors of the measure, including Senate Agriculture Committee Chairwoman Debbie Stabenow and Senator John Boozman, the panel’s top Republican, argued it would provide much needed regulatory clarity.
“This fast-growing industry is currently governed largely by a patchwork of regulations at the state level. That simply is not an effective way to protect consumers from fraud,” said Boozman in a statement.
In recent months the crypto world has been rattled with scandals going from cross-chain bridge hacks draining hundreds of millions of dollars in customer funds.
Just last Monday the Securities and Exchange Commission filed a civil complaint charging 11 people in the creation and promotion of an allegedly fraudulent crypto-focused pyramid scheme that raised more than $300 million from investors.