Regulation
CFTC Chairman Expects Regulators to Crack Down on More Crypto Firms
Last updated: May 6, 2024 at 11:41 p.m. EDT | 2 minutes of reading
Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said cryptocurrency companies can expect to see more enforcement action from U.S. regulators over the next 6 to 24 months, as individual interest in this asset class increases.
Expect to see ‘another round of enforcement’ in cryptocurrency space, warns Behnam, Chairman of the CFTC speaking Monday at the 27th annual Milken Global Conference.
The United States Securities and Exchange Commission (SEC) is actively pursuing legal action against several cryptocurrency companies and intensifying its crackdown on trading. Most recently, the SEC is preparing to take legal action against the American brokerage firm Robinhood Markets, cryptocurrency unit.
During the panel discussion, Behnam emphasized the importance of regulation and consumer protection, highlighting the events of 2022 involving the collapse of cryptocurrency exchange FTX.
“From my perspective as a regulator, we’re probably going to see in the next 6 to 18 or 6 to 24 months another round of enforcement action because of this cycle of asset appreciation and retail investor interest ” said Behnam.
“Beyond the legitimacy, the direction this technology could take and the role it could play in our economy, our commerce and the Internet, digital assets in general, we need to think about things from the perspective of regulation and consumer protection,” adds Behman.
In March this year, Behnam reiterated his call for Congress to Pass Legislation Clarifying Crypto Regulations. The call for congressional action was presented during a hearing before the House Agriculture Committee.
Crypto Regulation Is Lagging
Behnam stressed the urgency of the situation, citing the rapid growth of the crypto market and its growing acceptance by the general public. He stressed the need to clarify the regulatory status of Bitcoin, highlighting its significant market share alongside Ethereum.
He urged Congress to quickly close the regulatory void, emphasizing that cryptocurrencies, particularly Bitcoin, are here to stay. Amid increased scrutiny and growing interest from lawmakers, Behnam’s call to action was prompted by investigations into the CFTC budget.
At 27th Annual Global Milken Conference On Monday, Behnam pointed out, despite recent scandals in 2022, the cryptocurrency market is growing.
“This asset class is sustainable,” says Behnam. “We obviously had to deal with a lot of bad events in 2022 that, from a regulatory standpoint, frankly proved a lot of the things I’ve been saying for the last 5 or 6 years,” Behnam said.
“Despite what happened in 2022, we find ourselves in a growing market, with increasing capital investment and increasing market capitalization and I think a renewed interest from many entrepreneurs,” adds Behnam .