The Chair of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, emphasized the pressing need for Congress to enact crypto-specific legislation.
During his annual testimony before the House Agriculture Committee, Behnam underscored the importance of establishing clear regulatory jurisdiction over the crypto industry to safeguard the market's integrity and investor interests.
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The CFTC Chair's comments came amidst discussions on the Financial Innovation and Technology Act for the 21st Century (FIT Act), a legislative proposal aiming to modernize regulatory frameworks for financial technologies, including crypto.
While the FIT Act has made progress through various committees, it awaits further movement in Congress. Behnam expressed confidence that, with the act's passage, the CFTC could develop a comprehensive regulatory framework within a year, thus enhancing market stability and investor protection.
Behnam's message called for legislative action to address regulatory gaps in the crypto sector. He highlighted the necessity for clarity around the roles of Bitcoin (BTC) and Ether (ETH), which dominate a significant portion of the market's capitalization.
Behnam also addressed the classification of crypto:
If it's not a security, then it's a commodity. In which case, the analysis has to take place to make a determination that it's not a security.
This delineation, he noted, is critical for establishing appropriate regulatory oversight.
As the digital currency arena evolves, the urgency for legislative clarity remains apparent, underscoring the collective responsibility to foster a secure and thriving crypto ecosystem.
In other crypto regulation news, Judge Tana Lin's ruling in a Coinbase-related case supports the SEC's view that secondary crypto sales are securities.
