The chairman of the Commodities Futures Trading Commission (CFTC), Rostin Behnam, believes that most cryptocurrencies are commodities under existing laws, which need to be updated to take into account technological advances.
Behnam made the statement during an interview on CNBC’s Squawk Box on December 12. The CFTC chairman said there is an urgent need for more comprehensive regulatory frameworks as crypto is here to stay.
Behnam’s comments come amid growing concerns about the lack of precise regulation in the digital asset space. He emphasized that while cryptocurrencies have established a permanent presence in the market, regulators and Congress must work together to close existing legislative gaps.
Turf war
According to Behnam, one of the critical challenges in regulating digital assets is the ongoing “war” between various regulatory agencies – primarily the SEC and the CFTC – over who gets to regulate the fast-growing sector. This conflict has hampered progress in establishing clear guidelines for digital currency management.
Benham said Congress must step in and play a decisive role in legitimizing and integrating cryptocurrency technology into the existing financial system.
Behnam emphasized that the current regulatory framework is inadequate for the new and evolving nature of digital assets. He called on Congress to address this gap, noting the importance of adapting decades-old laws to new technological developments.
Behnam’s call for action reflects a growing consensus among regulators on the need for updated laws that can effectively govern the fast-growing cryptocurrency market.
Main concerns
A major concern for Behnam is the use of cryptocurrencies in illegal activities, including terrorist financing. He pointed out that Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations are crucial in the fight against these problems.
Behnam also discussed the specific challenges of stablecoins and the overall structure of the cryptocurrency market. He indicated that while there is a lot of focus on AML and KYC regulations, equal attention must be paid to the stability and integrity of the market.
This includes ensuring customer protection and preventing market manipulation.
Behnam’s comments shed light on the complexities of regulating the dynamic and rapidly evolving cryptocurrency market. His call for more explicit regulation and congressional action underscores the urgent need for a coordinated approach to managing this new financial frontier.