Agriculture Committees Request CFTC Regulatory Guidance On Digital Assets

In a joint letter, leaders of the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition and Forestry asked CFTC Chair Rostin Behnam to issue regulatory guidance on digital asset markets.

The letter highlighted the CFTC's existing authority over certain digital assets (e.g., Bitcoin and Ether) under the Commodity Exchange Act, including the CFTC's (i) regulatory authority over all commodity derivatives, and (ii) antifraud authority as to physical transactions. The letter noted the very substantial benefits that can result from digital assets and decentralized finance (such as lower transaction costs and reduced settlement times), but also highlighted the potential for fraud and manipulation without the presence of responsible regulatory oversight.