According to the reports, CFTC chief, Rostin Behnam, stated on September 15, the US Commodity Futures Trading Commission is getting ready to become a significant regulator of the cryptocurrency market and his organisation has already started making preparations.
Behnam is all set to testify before the Senate Agriculture Committee and stated that “the market volatility and its impact on retail consumers—which may only grow under present macroeconomic conditions—highlights the essential need for legislative clarity and market safeguards.”
Last month, Committee Chairwoman Sen. Debbie Stabenow (D-Mich.) and the panel’s leading Republican, Sen. John Boozman (R-Ark.), introduced legislation that would give the agency significant authority to regulate digital asset trading, including empowering the CFTC to oversee crypto spot markets.
Behnam informs US Senators that the CFTC is ready to be a crypto watchdog
The Securities and Exchange Commission and the courts would still have the authority to choose which assets would be classified as SEC-regulated securities because it would not allow the agency to specify which tokens it would monitor. The Senator Stabenow-Boozman bill, in contrast to earlier attempts that have sought more comprehensive rules for the industry, focuses on the CFTC, the sole agency under the control of this Senate panel. Stabenow pointed out that retaining the bill in one committee streamlines the process of getting it to the Senate floor for a larger vote.
Similar legislation has been submitted in the House, but with the midterm elections rapidly approaching and the legislative session winding down, there is little chance that any legislation will pass through Congress before the end of the year. However, as the campaigns draw nearer to their goal, it is anticipated that more laws will propose that the CFTC play a key role in crypto regulations.
With a present budget of around $320 million annually, Behnam estimated that his organisation would require an additional $112 million over the course of the first three years to implement this increased monitoring. The law would establish industry fees to cover the additional expenses, which would primarily come from recruiting and providing training for new crypto workers.
The Blockchain Association, a crypto advocacy group based in Washington, withdrew that assertion and listed it among a number of worries in a statement on Thursday. According to the report, the definition of digital commodities in the Stabenow-Boozman proposal is “too limited and unclear and must be clarified to provide a clear dividing line between the CFTC and SEC.” The group asserts that by “using the same regulations for centralised intermediaries and decentralised protocols,” the measure could endanger decentralised finance (DeFi).
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