Will CFTC Be in Charge of Overseeing the Cryptocurrency Market?
- The CFTC is planning to strengthen its control of the cryptocurrency market.
- As per Rostin Behnam, CFTC is the authorized regulator to oversee digital assets trading.
The US Commodity Futures Trading Commission (CFTC) is continuously demanding the regulation of the cryptocurrency market. In a recently held legislative hearing, the chairman of CFTC, Rostin Behnam, expressed that, If the proposed Digital Commodities Consumer Protection Act is passed into law, the regulatory body will have full oversight capabilities to control the crypto market.
Rostin Behnam stated:
The volatility in the market, and its impact on retail customers which may only worsen under current macroeconomic conditions emphasizes the immediate need for regulatory clarity and market protections.
Behnam’s Allegations Regarding Regulation
The CFTC’s knowledge and experience make it the perfect regulator for the digital asset commodity market. According to a measure being pushed by committee leaders to develop new rules for the crypto business, putting Behnam’s agency at the center of federal oversight.
Behnam applauded the legislation and its proposal for extra agency funding, which will enable the CFTC to quickly establish the new oversight over digital commodity assets. The courts, lawmakers, and regulators have all acknowledged that cryptocurrencies fall under this category, though the legal status of other assets is less clear.
All digital commodity platforms must maintain adequate financial, operational, and managerial resources, segregate customer funds, and comply with commission requirements for the treatment of customer assets.
Behnam furtherly expressed that the CFTC can move quickly to implement this new regime, with the additional resources anticipated by the funding mechanism in the DCCPA and the clear mandates for customer education, outreach, and information gathering to ensure that efforts reach all demographics of the investing community.
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