In a context where the crypto market is facing the worst crisis in its history, regulators such as the CFTC and the SEC have a fundamental mission to accomplish. This consists of using their influence to ensure that users are protected from episodes of fraud and embezzlement similar to those that plagued the crypto sector in 2022.
CFTC in pole position to regulate the crypto industry?
Rostin Behnam, head of the Commodity Futures Trading Commission (CFTC), an independent body which, like the Securities and Exchange Commission (SEC), ensures the proper functioning of the American financial and stock markets, once again spoke on the regulation of the crypto market.
In a press release published on Sunday, February 5the official reiterated the need for the various players to adopt strict operating rules to govern the crypto industry.
This mission, which is in accordance with the specifications of the CFTC, Behnam believes that the institution can fully assume it. Because, he points out, the CFTC is “well placed” to fill the legal void in which the crypto sector has been navigating for years, in defiance of federal laws and at the expense of users.
The CFTC undertakes to propose the necessary texts
The president of the CFTC is well aware of the stakes. It’s not about working to suppress the crypto ecosystem which, he acknowledges, is on track to grow stronger and play a meaningful role in the economy.
But without clear regulations and guidelines, Rostin Behnam considers that the crypto ecosystem will make more victims than in 2022. If regulation is to emerge in this sector, the CFTC wants to be the instigator.
This requires sustained collaboration with new members of Congress. The mission also involves working with the various stakeholders without whom regulatory efforts could lack relevance.
“There is a new Congress, and I will continue to engage and provide technical assistance in drafting bills, as requested. The CFTC will also continue to engage with new stakeholders. The agency has core processes and guiding principles, and we are cautious, deliberative and patient” Behnam said.
The question remains how the CFTC will work with the SEC when it comes to setting up crypto regulations. The two agencies indeed seem to share the same prerogatives.
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