The new Chairman of the Commodities Trading Futures Commission (CTFC) believes that non-security crypto assets require extensive law.
Chair Rostin Behnam stated in a recent government news release that there is still a gap in the regulation of crypto currency markets of non-security digital assets and that the CFTC is “ideally positioned” to fill the breach.
Behnam goes on to add that rules are required to prevent catastrophic failures like the one that occurred in 2022 and to keep consumers safe.
According to Behnam, the fact that 2022 will be a turbulent year for virtual assets, with bankruptcies and fraud claims, further reinforces the necessity for clear crypto norms.
“The crypto market was shook to its core last year, on multiple distinct fronts. Bankruptcies, failures, and runs, in my opinion, only validate the necessity for action. The ecology is large, is not going away, and requires extensive laws.
The cryptoverse is an open system. Regulation is required to safeguard clients and to prevent breakdowns that cannot be predicted within any bounds in the local and global financial systems. We must respond regardless of whether one or more occur in 2023 or 2033.”
The CFTC Chair, who was inaugurated in last month, has stated that he intends to cooperate with Congress and crypto stakeholders to regulate the young sector.
“There is a new Congress, and I will continue to engage and give technical support to develop legislation, as needed.
In addition to responding to inquiries, the CFTC will continue to interact with additional stakeholders. The agency has protocols and basic concepts that guide us, and we are cautious, deliberate, and patient.”
