![](https://crypto.news/app/uploads/2022/03/Digital_Currencies_Will_Require_New_Rules_to_Protect_Consumers_Fed_Chair_Says.jpg)
[Photo Source](https://crypto.news/app/uploads/2022/03/Digital_Currencies_Will_Require_New_Rules_to_Protect_Consumers_Fed_Chair_Says.jpg)

So...this week has brought us the announcement by FTX CEO Sam Bankman-Fried (hereinafter 'SBF') that oops, his exchange is experiencing 'liquidity crunches'. And then, thereafter, fessing up that FTX and SBF founded Alameda Research comingled customer funds - a big no-no. Well lo and behold FTX announces a huge $10 billion hole in its balance sheet and freezes withdrawals. Likewise, a related SBF entity, FTX US, hints that it may also halt trading in the near future. [See, e.g. De, N. [FTX Collapse Sparks Alarm From US Lawmakers](https://www.coindesk.com/policy/2022/11/10/ftx-collapse-sparks-alarm-from-us-lawmakers/). (Accessed November 11, 2022)].

Needless to say, this collapse of FTX has caused panic attacks within the crypto community as well as an initial concern for legislation such as the 'DCCPA'. Initially, the crypto community was unsure of the Senators reaction to the looming FTX crisis for the reason that it was widely believed within the community that SBF was a strong backer of the DCCPA. [See, Mutunkei, J. [U.S. Senators demanding better consumer protection after FTX collapse](https://crypto.news/u-s-senators-demanding-better-consumer-protection-after-ftx-collapse/). (Accessed November 11, 2022)]. In fact, in addition to SBF having personally attended several Senate Hearings on Crypto, on October 19, 2022 he authored an article posted on FTX US Blog titled 'Possible Digital Asset Industry Standards' [See, e.g. Lindrea, B. [US senators commit to advancing crypto bill despite FTX collapse](https://cointelegraph.com/news/us-senators-commit-to-advancing-crypto-bill-despite-ftx-collapse). (Accessed November 11, 2022)].

Any concern surrounding the Senators reactions were answered in a release dated November 10, 2022, wherein their intention was clarified. In said release, penned by Sen. Boozman (R-AR), he stated:

> 'The events that have transpired this week reinforce the clear need for greater federal oversight of the digital asset industry. That has been our goal since we began drafting the Digital Commodities Consumer Protection Act of 2022. Working closely with our colleagues, financial regulators, academics and a wide array of industry participants, we introduced a robust bill that aims to bring transparency and accountability to the market. In light of these developments, we are taking a top-down look to ensure it establishes the necessary safeguards the digital commodities market desperately needs. Chairwoman Stabenow and I remain committed to advancing a final version of the DCCPA that creates a regulatory framework that allows for international cooperation and gives consumers greater confidence that their investments are safe. While our legislative work continues, the Commodity Futures Trading Commission already has the ability to regulate and prosecute fraud, manipulation and abuse. I strongly encourage them to actively exercise those authorities when necessary'.

[Boozman, J. [Ranking Member Boozman Statement on Digital Commodities Consumer Protection Act of 2022](https://www.agriculture.senate.gov/newsroom/rep/press/release/ranking-member-boozman-statement-on-digital-commodities-consumer-protection-act-of-2022). (Accessed November 11, 2022)].

The DCCPA was first introduced into the legislative process on August 3, 2022. Should the DCCPA become law (by passage of the House, Senate and President Biden), it will vest an extension of regulatory authority over the crypto industry in the Commodity Futures Trading Commission (CFTC). [See, e.g. Andersen, D. [Senators Stabenow, Boozman introduce crypto bill that extends CFTC's regulatory powers](https://cointelegraph.com/news/senators-stabenow-boozman-introduce-crypto-bill-that-extends-cftc-s-regulatory-powers). (Accessed November 11, 2022); see also, Nagoda, K. [While the House is on Break, This Past Week the Senate Takes Up Two Bipartisan Crypto Bills](https://hive.blog/hive-167922/@kevinnag58/while-the-house-is-on-break-this-past-week-the-senate-takes-up-two-bipartisan-crypto-bills). (Accessed November 11, 2022)].

***Table of Authorities***

- Andersen, D. [Senators Stabenow, Boozman introduce crypto bill that extends CFTC's regulatory powers](https://cointelegraph.com/news/senators-stabenow-boozman-introduce-crypto-bill-that-extends-cftc-s-regulatory-powers). (Accessed November 11, 2022)

- Boozman, J. [Ranking Member Boozman Statement on Digital Commodities Consumer Protection Act of 2022](https://www.agriculture.senate.gov/newsroom/rep/press/release/ranking-member-boozman-statement-on-digital-commodities-consumer-protection-act-of-2022). (Accessed November 11, 2022)

- De, N. [FTX Collapse Sparks Alarm From US Lawmakers](https://www.coindesk.com/policy/2022/11/10/ftx-collapse-sparks-alarm-from-us-lawmakers/). (Accessed November 11, 2022)

- Lindrea, B. [US senators commit to advancing crypto bill despite FTX collapse](https://cointelegraph.com/news/us-senators-commit-to-advancing-crypto-bill-despite-ftx-collapse). (Accessed November 11, 2022)

- Mutunkei, J. [U.S. Senators demanding better consumer protection after FTX collapse](https://crypto.news/u-s-senators-demanding-better-consumer-protection-after-ftx-collapse/). (Accessed November 11, 2022)

- Nagoda, K. [While the House is on Break, This Past Week the Senate Takes Up Two Bipartisan Crypto Bills](https://hive.blog/hive-167922/@kevinnag58/while-the-house-is-on-break-this-past-week-the-senate-takes-up-two-bipartisan-crypto-bills). (Accessed November 11, 2022)



Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@kevinnag58/sens-stabenow-and-boozman-double-down-on-the-digital-commodities-consumer-protection-act-2022-dccpa-in-ftx-wake)