New crypto oversight legislation arrives as industry shakes

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Crypto investors have seen prices drop and companies crater with fortunes and jobs disappearing. Some firms have been accused by federal regulators of running an illegal securities exchange.

industry, who see the CFTC as more industry-friendly regulator than the SEC. The CFTC, which a budget last year of $304 million with roughly 666 employees, is a fraction of the size of the SEC, which had a budget of nearly $2 billion and 4,500 full-time employees.

In a press conference Stabenow and Boozman both acknowledged that the while they have faith that the CFTC is up to the task of regulating cryptocurrencies, the agency would need support. The bill attempts to alleviate this issue by imposing on the crypto industry user fees, which in turn would fund more robust supervision of the industry by the CFTC."Obviously if the CTFC is to move aggressively in this area, they are going to need more resources," Stabenow said.

Sen. Pat Toomey, R-Pa., in April introduced legislation, called the Stablecoin TRUST Act, that would create a framework to regulate stablecoins, which have seen massive losses this year. Stablecoins are a type of cryptocurrency pegged to a specific value, usually the U.S. dollar, another currency or gold., called the Responsible Financial Innovation Act.

 

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