Sam Bankman-Fried, chairman of the Commodity Futures Trading Commission (CFTC), said that the collapse of the FTX crypto exchange has made Washington’s CFTC a top priority. cryptocurrency He said it gave urgency to his efforts to convert him into an observer.
“FTX’s Collapse is Proof that the CFTC Needs More Power in the Cryptocurrency Market”
CFTC Chairman Rostin Behnam said the collapse of FTX, whose rapid and drastic decline resulted in its filing for bankruptcy last week, is an example of why his institution needs more power to oversee its cryptocurrency operations and trading.
In the interview, the head of the CFTC said:
“I hope this will increase the urgency for Congress to take action to pass legislation that would give the CFTC greater powers to regulate cash markets and digital assets.”
Crypto executives are pressing the CFTC for more mandate as they resist claims by Securities and Exchange Commission (SEC) Chairman Gary Gensler that many digital currencies are securities that fall under the jurisdiction of the SEC.
bitcoin after the collapse of its exchange FTX, there are growing signs that customers have little chance of getting most of their deposits back; FTX Trading International has just $900 million in liquid assets versus $9 billion in liabilities as of last weekend.
“The Collapse of FTX Could Have a Chain Effect in the Industry”
At the Futures Industry Association conference in Chicago, Behnam said that the collapse of FTX, which caused rapid chaos in the industry, could have a knock-on effect on other financial institutions, but it is not yet known how far this nuisance will spread.
Earlier at the event, he said the crisis appears to have been limited to investors and traders directly related to FTX so far.
Behnam has previously said that his institution is ready to take on a comprehensive oversight role in the cryptocurrency markets, a change he says many in the industry will welcome. The CFTC’s jurisdiction over crypto is currently largely limited to crypto futures.
Behnam continued his statements on the subject as follows:
“We don’t have surveillance tools, we don’t have market monitoring tools, so we have to rely either on crashes or on people who come to us and tell us they’ve seen fraud or manipulation in the market.
We will continue to monitor the institutions we can follow, and apart from that, I will continue to advocate for new mandates.”
*Not investment advice.
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