CFTC Chairman advocates for up-to-date crypto legislation.
Speaking at the Financial Industry Association Expo 2023 in Chicago, Rostin Behnam, Chairman of the United States Commodity Futures Trading Commission (CFTC), emphasized his agency's growing role in policing the digital asset sphere.
Behnam revealed that over a third of the CFTC's enforcement actions involving cryptocurrencies occurred in the current fiscal year.
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CFTC Chairman outlined that in 2023 so far, the CFTC collected $6 billion in penalties and took 45 enforcement actions specifically related to digital assets. These activities comprise over 34% of the commission's total 131 actions against digital asset-related firms since 2015.
One notable case highlighted by Behnam was against Ooki DAO. The litigation led to the decentralized autonomous organization's closure and a financial penalty of $643,542. Interestingly, the judgment declared that a DAO should be treated as a "person" under the Commodity Exchange Act (CEA) of 1936.
Discussing the future, Behnam turned to the CEA, stating that although it has served well, its limitations, established decades ago, now create barriers to rulemaking and policy development crucial to the commission's mission.
These limitations also force the CFTC to make significant investments in ensuring its actions are within the boundaries set by the act. Behnam was keen to note that with emerging technologies like DeFi and AI, the financial market landscape is changing, and regulations must evolve to ensure continued customer protection.
Contrasting with this viewpoint, Securities and Exchange Commission Chair Gary Gensler claims that existing financial laws do not require an overhaul. However, Behnam argued against this inertia, stating that waiting for victims to suffer before taking proactive measures weakens the agency's purpose.
Rostin Behnam's comments underscore the need for a new legislative approach to keep pace with rapidly advancing technologies. While existing frameworks may have served well in the past, Behnam's call for expanded powers for the CFTC suggests that more friendly governance is needed in the face of the changing landscape of financial markets.
