Speaking at the Futures Industry Association Expo 2023 on Oct. 2, U.S. Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam reiterated his stance on the urgency of implementing a substantial regulatory framework in the burgeoning cryptocurrency market.
Behnam’s comments are among the firmest to date in a series of calls for greater attention to updating policy frameworks to more adequately regulate the digital asset industry. These comments are in stark contrast to view from Behnam’s counterpart at the Securities and Exchange Commission, Gary Gensler, who has maintained that the securities laws currently on the books are sufficient to regulate the industry.
According to Behnam, the CFTC’s Division of Enforcement has obtained orders imposing more than $6 billion in monetary relief in the past fiscal year. Among these actions, 45 were related to digital asset misconduct, accounting for over 34% of the 131 such actions initiated by the Commission since 2015.
This address aligns with Behnam’s previous statements that digital assets markets desire and demand a clearer regulatory framework. This stands in contrast with the stance of Securities and Exchange Commission (SEC) Chairman Gary Gensler, who has repeatedly suggested that existing securities laws are sufficient to govern digital assets.
Furthermore, Behnam posits that approximately 70% of the crypto market should be recognized as commodities. He has called for legislation from Congress to provide clear guidelines on commodity tokens and enhance the CFTC’s authority in this area.
Behnam’s speech also touched on the criticality of implementing proactive measures to ensure robust cybersecurity, system safeguards, and customer protection. He argued that waiting for victims to suffer undermines the Commission’s mission.
The CFTC Chairman’s statements continue to reflect his firm stance on the need for additional regulations for the crypto and particularly Defi space, even in the face of consistent legal challenges. This perspective further highlights the ongoing divergence of views between Behnam and his SEC counterpart regarding the regulatory future of the crypto market.
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