The U.S. Commodity Futures Buying and selling Fee (CFTC) dedicated to regulating crypto tokens not labeled 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 consider the CFTC is nicely positioned to fill this particular hole if Congress so chooses.”
Benham stated that the CFTC will interact with the newest assembly of Congress to realize 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 varied 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 exhibit 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 staff.
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 to this point, 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 present performs a extra minor position in crypto regulation than the U.S. Securities and Alternate Fee (SEC). The SEC dominates the realm as a result of many crypto tasks will be thought of securities. The SEC typically penalizes crypto exchanges, lending platforms, and token gross sales and choices and takes motion towards fraud.
Developments final yr prompt that the CFTC may acquire a better position in crypto regulation. SEC chairman Gary Gensler additionally endorsed granting a bigger position to the CFTC.
