CFTC Chair Urges Enactment of Legislation for Cryptocurrency Regulation

U.S. Commodity Futures Trading Commission (CFTC) Chair Calls for Congressional Action on Cryptocurrency Regulation

Rostin Behnam, the Chairman of the U.S. Commodity Futures Trading Commission (CFTC), has emphasized the need to compel Congress to pass legislation aimed at regulating the realm of cryptocurrencies.

During a podcast hosted by the Intercontinental Exchange, Behnam highlighted the necessity for establishing a regulatory framework within the cryptocurrency market. He stressed the potential surge in institutional demand if a clear and comprehensive regulatory structure were in place.

Numerous bills related to cryptocurrency regulation have been introduced and approved by U.S. lawmakers. Among them is the “21st Century Verification Act,” championed by Republican members of the House of Representatives. This legislation aims to enhance the authority of the CFTC and bridge the regulatory gap between the commission and the Securities and Exchange Commission (SEC).

While SEC Chairman Gary Gensler has argued that current securities laws are sufficient to regulate cryptocurrencies, Behnam holds a differing perspective. He contends that a significant portion—approximately 70%—of the cryptocurrency market is composed of commodities.

Behnam’s proposed solution involves obtaining legislative measures from Congress to address the specific challenges related to commodity-based tokens. He further underscored the importance of collaboration between regulatory agencies in overseeing and regulating the cryptocurrency landscape.