CFTC chairman asks the congress for more supervision about the cryptoma market

CFTC chairman asks the congress for more supervision about the cryptoma market

The chairman of the Commodity Futures Trading Commission (CFTC) announced a hearing from the Senate Committee on Wednesday that his agency wanted to be commissioned to regulate the cash market for cryptocurrencies.

During a Senate Committee for Agriculture, which focused on "investigating digital assets: risks, regulation and innovation", said CFTC chairman Rostesswerin Behnam that there was no authorization to effectively monitor crypto-spothandel activities.

"Every bar goods market benefits from the federal supervision, but the market for digital assets, which is currently the most direct over the direct by state money transmitters licenses, is unique and, in view of our limited authority to monitor these markets, presents many new problems," said Behnam .

Behnam pointed out that digital assets and decentralized finances go beyond the research phase, and said his agency was "well positioned" to play a central role in the cash commodity market for digital assets. Cash Commodities relate to physical goods, in this case Bitcoin and Ether, in contrast to derivatives.

When asked what, in his opinion, the most effective measure that the congress can take to tackle customer protection, said Behnam, the congress should bring a regulatory structure to the cryptom market.

The chairman's comments reflect the mood of October, in which Behnam for the first time demanded a regulatory authority to monitor crypto activities. Benham also said that the aspiring investment class mainly affected retailers who were involved in speculation and that the CFTC was willing to protect investors from "fraud and manipulation".

pull a regulatory line in the sand

The CFTC was founded in 1974 and is an independent government agency commissioned to regulate and monitor traditional derivative markets. The agency also has a close mandate for regulating fraud and manipulation on the cash markets.

The Securities and Exchange Commission (SEC), on the other hand, is another independent government agency whose task is to enforce laws against market manipulation in relation to securities.

As part of the regulatory structure, the congress must decide on the traditional argument between what a goods and what a securities in relation to digital assets are.

When asked by Senator John Hoeven during the hearing, whether there should be a leading authority for the regulation of the cryptocurrency, Behnam said, the problem with which his authority and the Sec have been confronted, is no different than in the past 50 years.

"I certainly believe that we could end up in a place where both authorities are responsible for the cash markets," said Behnam, where the SEC would be responsible for securities and the CFTC for raw materials.

In response to questions asked by industry participants, FTX CEO Sam Bankman-Fried offered the counterpoint that crypto futures trading data are freely accessible for all participants and offer appropriate transparency. However, he admitted that the regulation of digital assets contained "holes".

"With Cash Commodity markets, it is much less clear," said Bankman-Fried in relation to the responsibility of supervisory authorities and government agencies. "This leads to all the usual risks if the federal supervision is not sufficient."

Bankman-Fried added that the patchwork of regulation without a clear regulatory authority causes risks for consumers, systemic risks and a lack of clarity for the industry.

"This has led to the condition in which we are today, where, despite the majority of intellectual property for the digital asset industry, 95 % come from the United States [Trade] Volume occurs."

He said that the majority of digital assets were currently not accessible from the United States. In order to relocate liquidity and business on land, the provision of a federal supervision and clarity would be a positive step, said Bankman-Fried.

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The Post-CFTC chairman asks the congress for greater supervision of the cryptomarkt is not a financial advice.