Skip to content

CFTC already preparing to be leading crypto regulator, says chairman

CFTC already preparing to be leading crypto regulator, says chairman

As expected by Senate legislation, the director of the United States Commodity Futures Trading Commission (CFTC), Rostin Behnam, said that he has already authorized his agency to begin preparing to be the primary and fully financed regulator for a significant portion of the cryptocurrency industry.

In a hearing that is scheduled to take place on September 15, Behnam is expected to inform those who are members of the Senate Agriculture Committee: 

“The volatility in the market, and its impact on retail customers – which may only worsen under current macroeconomic conditions – emphasizes the immediate need for regulatory clarity and market protections,” according to a CoinDesk report.

The measure that is being pushed by committee leaders to develop new regulations for the cryptocurrency business, placing Behnam’s agency at the center of government supervision, acknowledges

“The CFTC’s expertise and experience make it the right regulator for the digital asset commodity market,” he added.

Legislation introduced to give CFTC authority

Notably, Sen. Debbie Stabenow (D-Mich.) and the panel’s leading Republican, Sen. John Boozman (R-Ark.), introduced legislation last month that would give the agency broad authority to regulate digital asset trading, including the power to monitor crypto spot markets.

In spite of this, Behnam lauded the legislation and its plan for additional agency funding, which will enable the CFTC to “move swiftly” to establish the new supervision and control over digital commodity assets. The courts, lawmakers, and regulators have all acknowledged that this includes Bitcoin, but the status of other assets is still unclear.

“All digital commodity platforms must maintain adequate financial, operational, and managerial resources, segregate customer funds, and comply with commission requirements for the treatment of customer assets,” Behnam said. 

He added: 

“These tools have proven effective in preserving customer funds and market operations in times of instability, uncertainty, or market misconduct.”

Multiple laws proposed around CFTC involvement

As things stand, multiple laws have proposed that the CFTC assume a key role in crypto monitoring, and it is anticipated that this momentum will continue as the initiatives come closer to crossing the finish line. Notably, the CFTC chairman claimed the agency is ‘ready’ for the possibility of regulating crypto

On Thursday, September 15, many prominent players from the cryptocurrency business were slated to appear in front of the committee. These figures included officials from the cryptocurrency platform Coinbase as well as the trading firm Citadel Securities.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.