CFTC Chair Calls On Congress To Promote Crypto Laws

Rostin Behnam, the chair of the Commodity Futures Trading Commission (CFTC), has asked Congress to react quickly and implement laws to regulate the cryptocurrency market.

According to Behnam, there is a need for tough and universal rules throughout the digital markets industry following the FTX crypto exchange failure and the resultant loss of client assets, he said in a speech before the U.S. Senate Committee on Agriculture, Nutrition, and Forestry on November 1.

“We are here today because many Americans invest in a novel product and will likely lose money because digital asset markets lack the basic protections that we have all come to expect and have made American financial markets the envy of the world.”

If the crypto sector is not controlled, the consequences might spread to the rest of the financial system, according to the regulator.

The CFTC chairman also mentioned in the case of LedgerX, which did not file for bankruptcy with FTX, that because it is regulated by the CFTC, customer assets are safe.

“Many public reports indicate that segregation and customer security failures at the collapsed FTX entities resulted in huge amounts of FTX customer funds being misappropriated by Alameda for its proprietary trading. But the customer property at LedgerX – the CFTC regulated entity – has remained exactly it should be, segregated and secure. This is regulation working.”

Furthermore, the CFTC advises crypto exchanges that want to service regular investors to register with a federal market regulator.

Behnam also stated that there is a need for a clear organization to control digital assets. Notably, there have been requests for the CFTC and the Securities and Exchange Commission (SEC) to clarify who should be in charge of crypto supervision.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

Coincu News