CFTC Chairman Rostin Behnam stated his company is nevertheless waiting for the U.S. government to broaden its oversight authority of the cryptocurrency market.
CFTC Chairman: No legal improvements have been created to avoid a “second FTX” from taking place. Photo: CNBC
Speaking at a current conference, Chairman Rostin Behnam of the US Futures Trading Commission (CFTC) stated that his company had not but been offered better powers by US lawmakers to stay clear of a collapse. An incident very similar to the FTX 1 occurred in new.
The President stated: “Everything remains the same and we could see a repeat of an FTX-like incident.”
However, Behnam admitted that considering that the finish of 2022, investment curiosity in the cryptocurrency industry has decreased appreciably, and the problem is incredibly various from a yr in the past.
“So can an FTX-like accident occur once more? I will not dare say that it will hardly ever be like this, but it is specific that the latest industry is incredibly various from that of a yr in the past, allow alone two or three many years in the past”.
The CFTC chairman stated his company has constrained authority in excess of the cryptocurrency spot industry, only getting in a position to intervene when it is reported to be manipulating or cheating. As for the futures industry, the CFTC can only keep track of businesses registered with the commission, but are not able to intervene in trading routines. Meanwhile, the US Securities and Exchange Commission (SEC) only regulates the securities facet of the cryptocurrency market.
However, contrary to SEC Chairman Gary Gensler’s declare that most cryptocurrencies are securities, CFTC Chairman Rostin Behnam stated that non-protection tokens “account for up to 50%, although they are even higher “.
US lawmakers have launched numerous expenses in 2023 to regulate the cryptocurrency market and give better powers to economic watchdogs like the SEC and CFTC, but these expenses are nevertheless stalled and attracting the assistance required to be debated and voted.
Similar to the SEC, the CFTC has just lately created numerous moves to target organizations that the company says have committed violations in the cryptocurrency industry, particularly indicting 3 DeFi tasks together with Opyn., 0x, and Deridex.
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