According to recent reports, US Commodity Future Trading Commission, also known as CFTC, is committed to regulating crypto tokens not classified as securities. CFTC chairman Rostin Behnam explained the regulator’s stance during the Winter Meeting of the ABA Business Law Section Derivatives & Future Law Committee.
CFTC Chairman said there is more room for crypto regulation
CFTC chairman Benham said that there is more room for crypto regulation. He said that for non-security tokens, there is a gap in crypto regulation. During the ABA Business Law Section Derivatives & Future Law Committee Winter Meeting, Benham stated that CFTC could fill this specific gap if Congress chooses. He said that the CFTC would engage with the latest meeting of Congress to achieve that end.
Behman mentioned various bankruptcies and collapses in 2022 and said that regulation is needed to protect customer funds and limit failures. He then described the CFTC’s effort in the crypto space. Benham noted that the CFTC’s compliance branch had asked many crypto derivatives platforms to demonstrate regulatory compliance. He added that CFTC is the one who carries out meetings regularly with the registered crypto platform.
He also mentioned that one CFTC division is considering whether certain platforms that trade crypto derivatives should impose trading restrictions on their employees. Benham additionally highlights specific CFTC cases from the last few years, including a landmark case against OokiDAO and a case against fraud crypto exchange FTX and its sister company, Alameda Research.
Benham noted that US CFTC has brought forward a total of 69 actions involving digital assets to date, adding that cases involving digital assets made up 20% of the regulator’s 82 actions last year. He called these results outstanding due to the CFTC’s very limited authority. The chairman mainly made these statements to show their capabilities and how they can change the crypto community if given the authority and power.
CFTC has a minor role in crypto regulation
As you know, CFTC is committed to regulating crypto tokens not classified as securities. It’s because CFTC currently plays even a minor role in crypto regulation than the US SEC. The SEC dominates the area because most crypto projects are considered securities. The SEC often penalises crypto exchanges, lending platforms, token sales, and offerings and takes action against fraudsters.
Developments last year suggested that the US CFTC could gain a greater role in crypto regulation. SEC Chairman Gary Gensler also endorsed granting a larger role to the CFTC.
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