Commodities Futures Buying and selling Fee (CFTC) Chairman Rostin Behnam believes that almost all cryptocurrencies are commodities below present legal guidelines, which should be up to date to account for technological advances.
Behnam made the assertion throughout an interview on CNBC’s Squawk Field on Dec. 12. The CFTC chair stated there’s an pressing want for extra complete regulatory frameworks as crypto is right here to remain.
Behnam’s feedback come amid rising considerations concerning the lack of exact regulation within the digital asset area. He pressured that whereas cryptocurrencies have established a everlasting presence available in the market, regulatory our bodies and Congress should work collectively to shut present gaps in laws.
Turf Conflict
In response to Behnam, one of many essential challenges in regulating digital property is the continuing “turf conflict” between varied regulatory our bodies — primarily the SEC and the CFTC- over who will get to control the burgeoning sector. This battle has hindered progress in establishing clear pointers for the governance of digital currencies.
Benham stated that Congress must step in and play a decisive position in legitimizing and integrating cryptocurrency know-how into the prevailing monetary system.
Behnam emphasised that the present regulatory framework is inadequate for digital property’ novel and evolving nature. He known as on Congress to handle this hole, noting the significance of adapting decades-old legal guidelines to suit new technological developments.
Behnam’s name to motion displays a rising consensus amongst regulators concerning the want for up to date legal guidelines that may successfully govern the burgeoning cryptocurrency market.
Principal considerations
A big concern for Behnam is using cryptocurrencies in unlawful actions, together with terrorist financing. He identified that Anti-Cash Laundering (AML) and Know Your Buyer (KYC) rules are essential in combating these points.
Behnam additionally touched on the precise challenges posed by stablecoins and the general construction of the cryptocurrency market. He indicated that whereas there’s appreciable concentrate on AML and KYC rules, equal consideration should be given to the soundness and integrity of the market.
This consists of guaranteeing buyer safety and stopping market manipulation.
Behnam’s remarks make clear the complexities of regulating the dynamic and quickly evolving cryptocurrency market. His name for extra specific regulation and Congressional motion underscores the urgent want for a coordinated method to control this new monetary frontier.
