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.
“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.