Speaking at Politico’s sustainability summit yesterday, Rostin Behnam, chairman of the US Commodity Futures Trading Commission (CFTC), spoke about cryptoassets and Bitcoin.
Stating that they are faced with too many fraud cases in the crypto asset markets, the president used the following statements:
“Tens of millions of dollars are lost in digital assets due to phishing attacks, protocol exploits, and other fraudulent and manipulative actions, and this has become all too common.
Global conflicts have made crypto assets a tool for those targeting Americans.
Two-thirds of crypto-related scams have occurred in the past year.
TerraUSD and Luna crashed last week and investors lost billions of dollars.”
Drawing attention to the fraud cases in the crypto market with these words, the president said that the CFTC has used its current powers to the fullest to combat them and that they will continue to allocate resources to this area.
In addition, the President urged industry representatives to work together against such scams.
“I urge everyone to advocate and support regulatory obligations that will make these markets more transparent, safer and more flexible.
I have said many times that crypto markets will benefit from federal market surveillance.”
Commenting on the energy consumption of Bitcoin, the head of the CFTC stated that the transition from Proof of Work to Proof of Stake is necessary and should be supported.
In addition to these, Benham suggested to investors when purchasing digital assets, that explanations showing the energy consumption of these products should be made. Thinking that this method will be effective for promoting POS, Benham said:
“I would give an opportunity to those who are starting to recognize this problem and think about the difference in mining methods. Most of these coders are working towards the transition to a proof-of-stake system.
Crypto exchanges can encourage this by making statements to the end user who buys the coin, showing how much energy that coin uses. Understanding this by the end user can be a factor in reducing energy consumption in the crypto sector.”
Benham did not share whether his idea was part of an official plan.