The chairman of the Commodity Futures Trading Commission (CFTC) says the US needs a regulatory framework to protect the public from the risks associated with crypto.
In his testimony before the US Senate Committee on Agriculture, Food and Forestry hearing on digital commodity oversight, Rostin Behnam criticized Congress for failing to fill the void in crypto regulation.
“What has concerned me most as this digital asset class expands is that even as everyday Americans fall victim to one digital asset scam after another, there is still no completed legislative response.”
Behnam says the CFTC should be given new legislative authority, given the dangers posed by an unregulated crypto market. He says Congress must act quickly so regulators can provide basic customer protections.
“As the digital asset market continues to integrate into traditional financial institutions, concerns about broader market resilience and perhaps even financial stability will increase. In short: our current trajectory is not sustainable.”
He says inaction will not destroy public interest in digital assets and will only result in greater risk for investors and the financial markets.
“Federal legislation is urgently needed to create a path for a regulatory framework that will protect American investors and potentially the financial system from future risks.”
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