Cryptocurrency regulation has suddenly become a major concern for governments. In the United Kingdom, the United States and even in Europe, it is only talked about after the FTX and Terra scandals. For Rostin Behnam, the president of the CFTC, the regulation of this industry is an absolute necessity.
Regulation of crypto-assets, the affair of the CFTC and the SEC
For Rostin Behnam, the cryptocurrency industry needs strict operating rules. Otherwise, malicious people will continue to claim victims in the crypto-sphere. The FTX, Terra, Celsius cases… have taught us more about this misfortune indeed.
In a recent interview with Blomberg, via his Odd Lots Podcastthe head of the Commodity Futures Trading Commission spoke again about crypto regulation.
” It is easy to suggest that there is no institution, that there is no individual, that it is only code, that it cannot be regulated, that it is feeds itself, but that’s not the right question. It really comes down to what is offered to US customers and what they are exposed to. And who is the individual or the group of individuals who created this entity, this code, to offer products? “says Rostin Behnam.
The case of Binance was also mentioned during the interview. For Mr Behnam, the Changpeng Zhao company is one of the ” bad actors forced to report to the gendarmes of Finance.
As you know, Binance is currently being sued by the CFTC. This one would have to register as a commodity exchange. The agency even went so far as calling ethereum a commodity in the lawsuit against the most popular exchange in the world.
What about CFTC limits?
Like the SEC, the CFTC has been mandated by the US government to regulate the cryptocurrency market. But both seem handicapped by the absence of law to better exercise their mission. Rostin Behnam himself pointed to a limit in carrying out his missions. Regulators still rely on 70-year-old case law to adjudicate between a security or a commodity.
” I do not have the legal authority to control the cryptocurrency markets. We have this very limited authority within the CFTC to police the cash markets for fraud or manipulation. “, he complains in the podcast.
” We know that there are many people who don’t want to comply with the law, who choose to evade it, or who don’t know about it – and sometimes they do surprising things, including writing things “, he continued.
In since it is a question of writing, know that Billy Markus confessed to having created the Dogecoin in just a few hours.
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