CFTC demands to expand its powers to regulate the cryptocurrency industry

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Acting Chairman of the US Commodity Futures Trading Commission, Rostin Banham, is demanding that the agency be expanded to regulate the cryptocurrency market.

In August, Rostin Behnam was selected by the administration of US President Joe Biden as chairman of the CFTC. According to
publications Bloomberg, Banham believes that the identified cases of misuse of cryptocurrencies are just the tip of the iceberg. Given the rapid development of digital currencies, as well as the growing interest in them from private and institutional investors, the agency may need more powers to control the cryptocurrency industry, the candidate for the CFTC chairman said.

Benam said the regulator has been closely monitoring the industry since Bitcoin futures were approved in 2017. However, the CFTC’s powers are limited to the supervision of financial derivatives. Benam is convinced that this is not enough to effectively combat cryptocurrency fraud and market manipulation.

His statements followed in connection with the “division of territory” between the CFTC and the US Securities and Exchange Commission (SEC). Earlier, SEC Chairman Gary Gensler said that many virtual currencies are classified as securities that must be registered with the SEC. Bennam believes that nearly 60% of the digital asset market, with a market cap of around $ 2.4 trillion, is in commodities. According to Benham, “It is imperative to have a Chief Police Officer ready, and the CFTC is ready to be one.”

Recently, information appeared in the media that the SEC may take over the functions of regulating stablecoins.

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