CFTC President Behnam says need for comprehensive regulatory framework for crypto

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CFTC President Behnam says need for comprehensive regulatory framework for crypto

The President of the Commodity Futures Trading Commission, Rostin Behnam, said at the Futures industry association Expo 2023 on Oct. 2, his stance on the urgent need of implementing a substantial regulatory framework in the burgeoning cryptocurrency market.

In his remarks, Behnam's comments 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 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.

Behnam said the CFTC's Division of Enforcement had received orders imposing more than $6 billion in monetary relief in the past fiscal year. In those cases, 45 were related to digital asset misconduct, accounting for more than 34% of the 131 such actions launched since 2015 by the Commission.

This address is consistent with Behnam's previous statement that digital assets markets want and demand a clearer regulatory framework. Although Gary Gensler has repeatedly said that existing securities laws are sufficient to regulate digital assets, it is not the same as the Securities and Exchange Commission Chairman Gary Gensler's position.

Behnam contends that approximately 70% of the crypto market should be recognized as commodities. He has urged Congress to act on legislation that provides clear guidelines on commodity tokens and enhance the CFTC's authority in this area.

In his speech, Behnam highlighted the importance of taking proactive measures to ensure robust cybersecurity, system safeguards, and customer protection. He said that waiting for victims to suffer undermines the Commission's mission.

The Chairman of the CFTC is determined to maintain his firm stance on the need for additional regulations for the crypto and especially the Defi space, even in the face of consistent legal challenges. The ongoing divergence of views between Behnam and his SEC counterpart regarding the regulatory future of the crypto market has further highlighted the ongoing conflict of views between the two.