# Digital Commodities Consumer Protection Act of 2022

This bill gives the Commodity Futures Trading Commission (CFTC)—a federal agency that oversees commodity markets—the power to regulate cryptocurrencies and other digital assets like Bitcoin and Ether. Right now, there's a gap in who oversees these digital currencies, and this bill aims to fill that gap by bringing them under the CFTC's authority.

The bill defines several key terms to make clear what falls under this new regulation. "Digital commodities" are basically cryptocurrencies and virtual currencies that people can own and trade directly without needing a middleman. The bill also creates definitions for the different types of businesses involved in crypto trading: brokers (who help people buy and sell), dealers (who trade for their own profit), custodians (who hold crypto for others), and trading platforms (the websites and apps where people actually trade). Banks and credit unions are specifically excluded from these rules, so they won't be regulated under this new system.

The practical effect is that cryptocurrency exchanges, brokers, and other platforms that handle digital assets would need to register with the CFTC and follow its rules. This means they'd have to follow anti-fraud and anti-manipulation requirements, similar to what stock brokers already do. The bill also applies these rules to people who work at these companies and are involved in soliciting or accepting trades. However, people who simply validate transactions on blockchain networks—like cryptocurrency miners—wouldn't be considered brokers or dealers just for doing that technical work.

For everyday people, this could mean more consumer protections when buying and selling cryptocurrencies, similar to protections that exist in traditional financial markets. However, it also means crypto platforms would face more regulatory requirements, which could affect fees, available services, or how quickly they can operate.

Digital Commodities Consumer Protection Act of 2022

Rep. Feenstra, Randy [R-IA-4]

Digital Commodities Consumer Protection Act of 2022 This bill grants exclusive jurisdiction to the Commodity Futures Trading Commission over activity involving digital commodities as specified by the bill. The bill defines digital commodities as fungible digital forms of personal property that can be transferred person-to-person without an intermediary. Excluded from this definition are securities, interests in physical commodities, and U.S.-backed digital currencies. The commission does not have jurisdiction over digital commodities used solely for the purchase or sale of a good or service. Digital commodity platforms (including brokers, custodians, dealers, and trading facilities) must register with the commission and comply with risk management and good governance procedures. The bill also sets forth recordkeeping requirements, conflict of interest standards, and other consumer protections.