CFTC Commissioner Dawn D. Stump described the scope of the CFTC's jurisdiction over cash market commodities (such as Bitcoin). She contrasted the agency's limited anti-fraud authority over these commodities to the CFTC's broader authority over commodity futures and derivatives (including Bitcoin futures).
To illustrate the CFTC's enforcement authority, Ms. Stump highlighted an enforcement action against Coinbase Inc. ("Coinbase"). Even though Coinbase never offered a derivatives product - placing it outside the scope of the CFTC's regulatory authority - the CFTC's enforcement authority allows it to investigate fraud or manipulation in cash commodity markets. Ms. Stump supported the limitations imposed on the CFTC's authority over cash market commodities, but she expressed concern that members of the public might overestimate the CFTC's authority in this regard and mistakenly believe that the CFTC exercises far greater oversight over Bitcoin and other digital products than is in fact the case.
Further, Ms. Stump reviewed recent SEC enforcement actions as to digital assets, including litigation involving the digital asset XRP. Ms. Stump stated that the case will "help to establish the scope of the SEC's authority."
Ms. Stump also expressed support for SEC Commissioner Hester M. Peirce's efforts to develop a limited safe harbor from securities regulation for new types of digital assets; she praised Commissioner Peirce's attempt to balance investor protection and regulatory flexibility that would allow for innovation.
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