CFTC President Makes Clear Statement About Bitcoin and Cryptocurrencies For The First Time After FTX Events!

Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), said on Monday. cryptocurrencies made a statement about it.

CFTC Chairman Rostin Behnam Hala FTX CEO Says He Supports Cryptocurrency Law Advocating SBF

Behnam defended legislation that both he and former FTX CEO Sam Bankman-Fried supported, arguing that his institution’s gaining authority over the spot markets would protect ordinary crypto investors because the institution could more easily thwart bad guys.

Behnam responded to a question about FTX and Bankman-Fried, which support the same legislation that Behnam supports to give the CFTC more power over crypto markets and exchanges.

The comments were among Behnam’s first since the FTX collapse and were a preview of how he would address the situation at a Senate hearing scheduled for Thursday on the matter.

“We Didn’t Have Authority to Inspect the FTX Incident”

Behnam said the CFTC does not have the authority to oversee much of the FTX empire. Behnam added that the legislation under discussion in the Senate would also increase transparency requirements for non-public exchanges, helping to ensure that client and corporate funds are not mixed, as is the case with FTX.

Speaking at the Financial Times’ crypto asset conference, Behnam said, “I think it’s important that we fill this regulatory gap before further harm is done to individual and institutional investors.”

Benham said the agency may require crypto exchanges, brokerages, and other participants to register if they trade digital commodities, and bitcoin He argued that since it is also defined as a digital commodity, this would allow for direct control.

The CFTC chairman also spoke about decentralized finance protocols. He expressed concern that this technology created a gap between the regulator and the licensed firm:

“There must be a relationship between the regulatory body and the agency or organisation. The organizer needs to know what’s going on, whether it’s people or code running an organization, and how transactions with customers are facilitated.”

*Not investment advice.