Two different cryptocurrency laws are passed by Brazil and the USA. US Senators are planning to increase the CFTC’s powers over crypto regulation. The Brazilian Parliament will vote on the Bitcoin law this week.
New bill gives CFTC more powers to regulate cryptocurrencies
Financial authorities from around the world continue to work on cryptocurrency regulations. The US Senate committee plans to propose a bill that would put cryptocurrencies under the jurisdiction of the commodity regulator. If the bill passes, the Commodity Futures Trading Commission (CFTC) will have greater control over cryptos. According to The Wall Street Journal’s August 3 report, with the Senate’s plan, Bitcoin and Ethereum will come under the CFTC’s radar.
The bill changes the definition of a commodity to include “digital commodity”, which applies to some cryptocurrencies. For example, Bitcoin and Ethereum will be included in the definition of commodities while excluding securities. The bill also introduces new categories for digital commodity brokers, digital commodity custodians, digital commodity sellers and requires them to register with the Commission. Senator Stabenow said in his statements on the subject:
We close regulatory gaps and require these markets to operate under simple rules that protect customers and keep our financial system safe.
Brazil to vote on new Bitcoin law
Considering the growing interest in the market, Fintechs, traditional banks and companies in the retail sector have stepped up the launch of products linked to cryptocurrencies. The issue is also on the agenda of the President of the Central Bank of Brazil, Roberto Campos Neto. For example, Neto attended an event in Rio in June to hear proposals for regulating the industry in the country.
According to the latest news, the President of the Brazilian Parliament said that this week’s agenda will be the regulation of cryptocurrencies. It is currently unclear whether any bills will be approved. If the proposed laws are approved, necessary funds will be collected for improvements. Earlier, Neto had said that regulating cryptocurrencies is complex and that it is appropriate to introduce direct rules.
