CFTC Chairman says he'll pursue substantial regulatory framework for cryptocurrency

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CFTC Chairman says he'll pursue substantial regulatory framework for cryptocurrency

The Chairman of the Commodity Futures Trading Commission, Rostin Behnam, said in a statement that he was determined to pursue a substantial regulatory framework in the burgeoning cryptocurrency market.

Behnam's remarks were 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. In contrast, Behnam's remarks are in stark contrast to the opinion of Gary Gensler, the chief executive of the SEC, who has maintained that the securities laws currently on the books are sufficient to regulate the industry.

In the past fiscal year, the CFTC's Division of Enforcement has received loans of more than $6 billion in monetary relief, according to Behnam. In addition to digital asset misconduct, 45 such actions were related to digital asset misconduct, which account for over 34% of the 131 such actions instituted since 2015 by the Commission.

This address contrasts with Behnam's previous statements that digital assets markets desire and demand a clearer regulatory framework. The SEC Chairman, Gary Gensler, has frequently vowed that current securities laws are sufficient to govern digital assets.

Behnam contends that around 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 authority of the CFTC in this area.

In his speech, Behnam highlighted the importance of implementing preventative measures to ensure robust cybersecurity, system safeguards, and customer protection. He said: The Commission's mission is to ensure that victims are not forced to suffer, and that waiting for victims to suffer is a threat to their lives.

The CFTC Chairman's statements reflect his firm stance on the need for additional regulations for the crypto and particularly Defi area, even in the face of consistent legal challenges. This perspective highlights the ongoing divergence of views between Evgeny Behnam and his SEC counterpart regarding the regulatory future of the crypto market.