Regulation
CFTC Chairman Predicts More Crackdowns in 6-24 Months
The digital currency ecosystem is under the watchful radar of regulators in the United States, sparking new twists and turns in crypto regulatory enforcement. With numerous enforcement actions introduced over the past year, Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), has hinted that more enforcement action is to come.
Robinhood Crackdown May Not End Crypto Regulation Push
According to an update from Fox Business correspondent Eleanor Terrett, the CFTC Chairman is planning a new round of cryptocurrency enforcement actions over the next 6 to 24 months.
The crackdown began with Robinhood when the United States Securities and Exchange Commission (SEC) issued a Wells Notice for its crypto business. Cryptocurrency Robinhood. The SEC alleges violations of Sections 15(a) and 17A of the Securities Exchange Act. There is a likelihood of civil injunctive action, public administrative proceedings and possibly cease and desist proceedings against the cryptocurrency trading platform.
Last month, Behnam, in a speech to lawmakers, urged them to adopt crypto regulation legislation. This regulation that he advocates should protect American investors as well as guarantee the stability of the financial market. The CFTC chairman hopes to increase the commission’s oversight of digital assets.
This request from Behnam has deeper connotations beyond crypto regulation. Such congressional guiding rules can help provide further clarity as the CFTC and SEC typically clash over crypto oversight.
The CFTC chairman is also under the radar of American lawmakers
This prediction of a new crackdown on the crypto world comes at a time when the CFTC chairman is also under scrutiny from lawmakers, with US Senator Elizabeth Warren leading the charge against Behnam. The senators demand Behnam’s interactions and communications with Sam Bankman-Fried.
Among the requested documents is a full accounting of all meetings, telephone conversations and emails between Behnam and Bankman-Fried throughout the president’s term. As the CFTC prepares to ramp up its enforcement efforts, crypto industry stakeholders could face increased scrutiny on all fronts.
Although the details of upcoming enforcement actions remain to be seen, industry observers and participants are preparing for a stricter regulatory environment. Given the volatility of crypto assets, the CFTC’s forecast could impact market sentiment in the coming days as investors seek to protect their assets.
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