CFTC chair says most cryptocurrencies are commodities underneath present legal guidelines

Commodities Futures Buying and selling Fee (CFTC) Chairman Rostin Behnam believes that almost all cryptocurrencies are commodities underneath present legal guidelines, which must be up to date to account for technological advances.

Behnam made the assertion throughout an interview on CNBC’s Squawk Field on Dec. 12. The CFTC chair stated there may be an pressing want for extra complete regulatory frameworks as crypto is right here to remain.

Behnam’s feedback come amid rising considerations in regards to the lack of exact regulation within the digital asset house. He harassed that whereas cryptocurrencies have established a everlasting presence out there, regulatory our bodies and Congress should work collectively to shut present gaps in laws.

Turf Struggle

Based on Behnam, one of many crucial challenges in regulating digital property is the continued “turf battle” between varied regulatory our bodies — primarily the SEC and the CFTC- over who will get to control the burgeoning sector. This battle has hindered progress in establishing clear tips for the governance of digital currencies.

Benham stated that Congress must step in and play a decisive position in legitimizing and integrating cryptocurrency know-how into the prevailing monetary system.

Behnam emphasised that the present regulatory framework is inadequate for digital property’ novel and evolving nature. He referred to as on Congress to handle this hole, noting the significance of adapting decades-old legal guidelines to suit new technological developments.

Behnam’s name to motion displays a rising consensus amongst regulators in regards to the want for up to date legal guidelines that may successfully govern the burgeoning cryptocurrency market.

Foremost considerations

A big concern for Behnam is using cryptocurrencies in unlawful actions, together with terrorist financing. He identified that Anti-Cash Laundering (AML) and Know Your Buyer (KYC) rules are essential in combating these points.

Behnam additionally touched on the precise challenges posed by stablecoins and the general construction of the cryptocurrency market. He indicated that whereas there may be appreciable deal with AML and KYC rules, equal consideration should be given to the steadiness and integrity of the market.

This contains making certain buyer safety and stopping market manipulation.

Behnam’s remarks make clear the complexities of regulating the dynamic and quickly evolving cryptocurrency market. His name for extra express regulation and Congressional motion underscores the urgent want for a coordinated method to control this new monetary frontier.