Regulation
Crypto Crackdown Coming? CFTC Chairman Predicts Increase in Enforcement
The head of the Commodity Futures Trading Commission (CFTC), Rostin Behnamissued a warning to the cryptocurrency industry, predicting an increase in enforcement measures as the market rebounds and attracts more individual investors.
What happened: Speaking on Monday at the Milken Institute’s 27th annual global conference, he said: “From my perspective as a regulator, we’re probably going to see in the next six to 18 or six to 24 months, another cycle coercive measures. due to this cycle of asset appreciation and retail investor interest.
He highlighted the lack of a strong regulatory framework which he believes leads to persistent problems of fraud and manipulation within the sector, The Block reported.
The context for Behnam’s remarks includes recent preliminary enforcement actions reported by the Securities and Exchange Commission (SEC) against several crypto entities.
Notably, on the same day, Robinhood Markets revealed receive a well notice from the SEC, suggesting potential securities violations by its cryptocurrency division.
Similar notices have also been issued to other key players in the crypto world, including Consensys And Uniswaplast month.
This increase in regulatory oversight follows a series of actions taken by the CFTC and SEC against major cryptocurrency platforms such as Binance and FTX over the past year, reflecting a tightening of the crypto operations landscape -currency in the United States.
Read also: Bitcoin Spot ETFs See Net Inflows of $217 Million on Monday
Why is this important: Additionally, during the conference, Behnam was asked about the progress of the stablecoin bill, more than 20 months in the making, by key figures such as the chairman of the Financial Services Committee of the Bedroom. Patrick McHenry(RN.C.) and Rep. Maxine Waters, (D-Calif.). Behnam expressed skepticism that the bill would pass in a timely manner, citing the limited number of legislative days and current political dynamics.
“There’s a lot of momentum, there’s a lot of desire, I think there will be effort from members on both sides, leadership from both sides, but it’s difficult to pass legislation to these days,” he remarked.
A particular point of contention in stablecoin discussions has been the determination of whether state regulators or the federal government should oversee stablecoin issuers.
Efforts to include the stable bill in crucial upcoming Federal Aviation Administration legislation have stalled, a Democratic aide indicated last week.
Behnam’s comments highlight the complexities and challenges facing the rapidly evolving cryptocurrency market as it attracts more and more investors. oversight by American regulators.
And after: These topics should be explored in depth at Benzinga’s next conference. The future of digital assets event on November 19.
Read next: Why Michael Saylor Considers Bitcoin the “Supreme Property of the Human Race”
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