Commodities Futures Trading Commission (CFTC) Chairman Rostin Behnam will resign on January 20, 2025, amid an unresolved lawsuit against retail betting market Kalshi, the agency announced today.
Behnam’s departure comes as the commission battles with Kalshi over the regulator’s ban on political betting contracts, highlighting the regulatory challenges in emerging financial markets.
During his tenure, Behnam has emerged as a staunch advocate for cryptocurrency oversight. His most notable achievement was securing a $4.3 billion settlement with crypto exchange Binance over regulatory violations.
Behnam pushed for expanding the CFTC’s authority over digital assets, and advocated for clearer regulatory frameworks in congressional testimony. Under his leadership, the agency has intensified enforcement actions against crypto companies operating outside legal boundaries.
The White House has not yet nominated a successor. Behnam’s departure raises questions about the future direction of digital asset regulation and the commission’s position on new financial products.
Last January, Behnam said he was concerned that the then-recent approval of Bitcoin (BTC) exchange-traded funds (ETFs) in the spot market would “exacerbate” the problems surrounding the digital asset markets.
According to Behnam, the goal of his enforcement actions has always been to protect investors.
“Without a regulatory framework, without that transparency, without the tools that we typically use as regulators, you’re going to continue to see this fraud and manipulation.
And beyond the legitimacy and where this technology could go and what role it could play in our economy and commerce, the internet, digital assets in general… we just have to think about things from a regulatory and consumer protection perspective. And I think that should be our guiding light in driving this conversation, closing these regulatory gaps and creating this framework that is ultimately going to protect American investors.”
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