CFTC chairman urges Congress to “move quickly” on considered crypto regulation

US Commodity Futures Trading Commission (CFTC) Chairman Rustin Behnam urged Congress to move quickly and pass legislation to regulate the cryptocurrency space.

According to Behnam, in the aftermath of the collapse of the FTX cryptocurrency exchange and the resulting loss of client funds, there is a need to enforce strict and uniform standards across the entire digital market, he said in a speech to the US Senate Committee on Agriculture and Nutrition. and forests on November 1.

The regulator noted that the effects could spill over into the overall financial system if the crypto sector is restricted.

The events of the past few weeks exemplify – in the most gruesome and deplorable way – the precarious state of the digital asset market. <...> I am convinced that we must move quickly through a measured supervisory approach to create barriers in these fast-growing markets of variable risk, or they will remain an uncertain bet for clients and may pose an increased risk to the broader financial system. He said.

The right regulatory body for cryptocurrency

Behnam further noted that there is a need for a clear body that can regulate digital assets. In particular, there have been calls for clarification between the CFTC and the Securities and Exchange Commission (SEC) on the appropriate body to handle cryptocurrency oversight.

“Inaction will leave consumers who have invested in digital commodities largely unprotected. Unlike other federal financial regulators, the CFTC lacks the necessary and direct authority to write the rules and oversee this market.”

he added:

“With nominal barriers to entry for new products and consumers, legitimate market forces have been replaced by enormous speculative interest, putting the American public at great risk.”

Notably, a comprehensive cryptocurrency regulation bill by Wyoming Senator Cynthia Loomis seeks to clarify the appropriate regulatory agency.

Commodity futures trading commission recommendations

Additionally, the CFTC has recommended that cryptocurrency exchanges that wish to service retail investors should register with a federal market regulator.

Part of the regulation will force players to describe the segregation and protection of client funds, the maintenance of sufficient capital to operate and public disclosures backed by independent accounting.

CFTC Chief Urges Congress to ‘Move Quickly’ on Considered Crypto Regulation appeared first on Coinphony.

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