Rostin Behnam calls for regulatory framework for cryptocurrency

Rostin Behnam calls for regulatory framework for cryptocurrency

Rostin Behnam, chairperson of the Futures Industry Association Association Expo 2023, emphasised the importance of implementing a substantial regulatory framework in the burgeoning cryptocurrency market.

Behnam's remarks are among the firmest to date in a series of calls for greater attention to updating policy frameworks to more accurately regulate the digital asset industry. These remarks are in stark contrast to view by 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.

The CFTC's Division of Enforcement, Behnam said, has issued orders imposing $6.4 billion in monetary relief in the past fiscal year. In those cases, 45 were related to digital asset misappropriation, accounting for over 34% of the 131 such actions instituted since 2015 by the Commission.

The address matches Behnam's previous statements that digital asset markets desire and demand a clearer regulatory framework. The SEC Chairman Gary Gensler has criticized the current securities laws as being sufficient to govern digital assets.

Behnam contends that about 70% of the cryptocurrency market should be recognized as commodities. He has called for legislation from Congress to establish clear guidelines on commodity tokens and enhance the CFTC's authority in this area.

In his speech, Behnam stressed the need for proactive measures to ensure robust cybersecurity, system safeguards, and customer protection. He argued that waiting for victims to suffer under the Commission's mission is a disservice to the Commission's objectives.

The CFTC Chairman's views remain consistent with his firm stance on the need for additional regulations for the Crypto and particularly Defi space, even in the face of constant legal challenges. In addition, the ongoing divergence of the views between Behnam and his SEC counterpart about the regulatory future of the crypto market further demonstrates the ongoing conflict of views between them.