Commodities Futures Buying and selling Fee (CFTC) Chairman Rostin Behnam believes that the majority cryptocurrencies are commodities beneath 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’s 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 careworn that whereas cryptocurrencies have established a everlasting presence available in the market, regulatory our bodies and Congress should work collectively to shut present gaps in laws.
Turf Struggle
In response to Behnam, one of many vital challenges in regulating digital belongings is the continued “turf struggle” between numerous 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 function in legitimizing and integrating cryptocurrency know-how into the present monetary system.
Behnam emphasised that the present regulatory framework is inadequate for digital belongings’ novel and evolving nature. He known as on Congress to deal with 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.
Essential considerations
A big concern for Behnam is the usage of cryptocurrencies in unlawful actions, together with terrorist financing. He identified that Anti-Cash Laundering (AML) and Know Your Buyer (KYC) laws 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’s appreciable concentrate on AML and KYC laws, equal consideration should be given to the steadiness and integrity of the market.
This consists of 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 strategy to control this new monetary frontier.