CFTC chair urges Congress to issue legislation for crypto regulations

CFTC seat Rostin Behnam told Congress determination is an urgent request for authorities that tin supply regulatory clarity for the crypto manufacture to guarantee investors are appropriately protected.

Behnam made the connection during his testimony earlier the House Agriculture Committee connected March 6 that chiefly focused connected the C FTC’s fiscal twelvemonth 2025 fund request.

Behnam said:

“The conception that crypto is going distant is simply a mendacious narrative.”

He added that much than 49% of the CFTC actions filed during the 12 months ending October 2023 progressive behaviour related to integer assets contempt the information that “no national bureau retains nonstop regulatory authority” implicit the crypto industry.

Framework successful 12 months

During the hearing, Behnam spoke astir the challenges and opportunities presented by integer assets, similar Bitcoin (BTC) and Ethereum (ETH), which correspond a important information of the crypto market’s full capitalization.

He said determination is simply a mendacious cognition among regulators and lawmakers that the integer assets marketplace mightiness diminish successful relevance. However, the erstwhile decennary has shown that to beryllium acold from the case, arsenic request for these assets has grown exponentially during that time.

Behnam stressed the request for proactive legislative measures to guarantee a unchangeable and transparent regulatory environment. He added that protecting investors should beryllium the government’s main priority, considering the surging involvement successful integer assets since the commencement of the year.

Behnam said it would instrumentality the CFTC astir 12 months to make a broad regulatory model for integer assets if Congress passes the Financial Innovation and Technology Act for the 21st Century (FIT Act).

The FIT Act, which has precocious done the House Agriculture and Financial Services Committees without reaching a level vote, aims to clarify the regulatory responsibilities regarding integer assets.

BTC, ETH are commodities

Behnam’s grounds besides addressed inquiries from committee members regarding the classification of integer currencies arsenic commodities oregon securities, a favoritism that impacts regulatory jurisdiction.

In effect to a question from Rep. John Duarte, Behnam explained that integer assets are mostly considered commodities if they bash not conscionable the criteria for being classified arsenic securities, indicating the nuanced attack required to modulate these assets effectively.

Behnam added that Bitcoin and Ethereum did not conscionable the criteria needed to beryllium classified arsenic securities, which automatically means they autumn nether the commodities umbrella contempt being incredibly antithetic from carnal commodities similar golden oregon corn.

The CFTC seat told Duarte that determination is an immense appetite for Bitcoin among retail and organization investors, careless of whether the authorities wants to legitimize it oregon not.

Behnam admitted that regulators person been trying to “shoehorn” crypto into different frameworks, and the manufacture needs to beryllium considered separately.

The station CFTC seat urges Congress to contented authorities for crypto regulations appeared archetypal connected CryptoSlate.