The U.S. Commodity Futures Buying and selling Fee (CFTC) dedicated to regulating crypto tokens not categorized as securities throughout a convention on Feb. 3.
CFTC chairman Rostin Behnam defined the regulator’s stance in the course of the ABA Enterprise Legislation Part Derivatives & Futures Legislation Committee Winter Assembly.
There, Benham stated that there’s extra room for crypto regulation. He stated:
“There stays a spot in crypto money market regulation for non-security tokens, and I imagine the CFTC is nicely positioned to fill this particular hole if Congress so chooses.”
Benham stated that the CFTC will have interaction with the newest assembly of Congress to attain that finish. The 118th U.S. Congress started on Friday and can final for 2 years till Feb. 3, 2025. It maintains a Democratic Senate majority however introduces a Republican Home majority — one issue that would influence the CFTC’s interactions with lawmakers.
Benham highlighted numerous bankruptcies and collapses in 2022 and stated that regulation is required to guard prospects and restrict failures.
He then described the CFTC’s efforts within the crypto house. Benham famous that the CFTC’s compliance department has requested crypto derivatives platforms to show regulatory compliance. He added that the CFTC carries out common conferences with registered platforms. He additionally stated that one CFTC division is contemplating whether or not sure platforms that commerce crypto derivatives ought to introduce buying and selling restrictions on their workers.
Benham moreover highlighted particular CFTC instances from the previous yr, together with a landmark case towards OokiDAO and a case towards FTX and Alameda Analysis.
He famous that the CFTC has introduced ahead 69 actions involving digital property so far, including that instances involving digital property made up 20% of the regulator’s 82 actions final yr. He referred to as these outcomes “excellent” because of the CFTC’s “very restricted authority.”
The CFTC at the moment performs a extra minor function in crypto regulation than the U.S. Securities and Change Fee (SEC). The SEC dominates the realm as a result of many crypto tasks will be thought-about securities. The SEC usually penalizes crypto exchanges, lending platforms, and token gross sales and choices and takes motion towards fraud.
Developments final yr recommended that the CFTC might achieve a better function in crypto regulation. SEC chairman Gary Gensler additionally endorsed granting a bigger function to the CFTC.
