Chair of the CFTC urges Congress to address regulatory void in the cryptocurrency sector
The Chairman of the Commodity Futures Trading Commission, Rostin Behnam, once again urged the U.S. Congress to take proactive steps in regulating the cryptocurrency industry.
During his annual testimony before the House Agriculture Committee on March 6, Behnam stressed the importance of enacting legislation that would define the jurisdiction of regulators in the crypto sector.
Citing the recent surge in Bitcoin’s value, Behnam underscored the necessity of “filling the gap in crypto regulation.” He stated that considering the potential for “another period of irrational exuberance” is an understatement.
Behnam also discussed the Financial Innovation and Technology for the 21st Century Act (FIT Act). If Congress passes the FIT bill, it would enable the Commodity Futures Trading Commission (CFTC) to establish a regulatory framework for the crypto industry within a year.
In July 2023, the U.S. House Financial Services Committee voted on new cryptocurrency legislation. The majority of legislators supported two crucial bills: the Financial Innovation and Technology for the 21st Century Act and a regulatory definition for blockchain technology.
The primary objective of this legislation is to establish a regulatory framework for digital assets, clarify the jurisdiction of the CFTC and SEC, address the issuance of stablecoins, determine the taxation of digital assets, and enhance consumer protection.
U.S. Treasury Secretary Janet Yellen also addressed the potential risks associated with the instability of stablecoins, the threat they pose to capital, and the volatility of tokens. Yellen urged Congress to pass legislation that would address these issues, particularly by regulating stablecoins and the spot market for crypto assets that are not classified as securities.
