{"id":6504,"date":"2025-01-07T16:47:03","date_gmt":"2025-01-07T16:47:03","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=6504"},"modified":"2025-01-07T16:47:03","modified_gmt":"2025-01-07T16:47:03","slug":"can-crypto-industry-face-further-scrutiny-us-regulator-warns-of-oversight-gaps","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=6504","title":{"rendered":"Can Crypto Industry Face Further Scrutiny? US Regulator Warns Of Oversight Gaps"},"content":{"rendered":"<div>\n<p><span style=\"font-weight: 400\">Rostin Behnam, <a href=\"https:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/behnamstatement010725\">outgoing chair<\/a> of the Commodity Futures Trading Commission (CFTC),\u00a0<\/span><span style=\"font-weight: 400\">has sounded the alarm on the need for oversight of digital assets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">According to a <a href=\"https:\/\/www.ft.com\/content\/25d078a1-0a64-4370-bca8-f19a6b5e8255\">7 January 2025 FT report,<\/a> Behnam emphasized that there are the risks posed by an unregulated crypto landscape.<\/span><\/p>\n<p>\u201cOver the past several years, a multitude of domestic and global events tested the resilience of all financial markets,\u201d he wrote in his final note.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today, I announced my departure from <a href=\"https:\/\/twitter.com\/CFTC?ref_src=twsrc%5Etfw\">@CFTC<\/a>. After more than seven years at the U.S. Commodity Futures Trading Commission, I will be stepping down from my position as Chairman on January 20th. My final day at the Commission will be Friday, February 7th. A <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f9f5.png\" alt=\"\ud83e\uddf5\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><\/p>\n<p>\u2014 Rostin Behnam (@CFTCbehnam) <a href=\"https:\/\/twitter.com\/CFTCbehnam\/status\/1876651557590044974?ref_src=twsrc%5Etfw\">January 7, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p class=\"entry-title\"><strong>Explore: <a href=\"https:\/\/99bitcoins.com\/news\/will-sec-have-no-democratic-commissioners-with-the-new-administration\/\" rel=\"bookmark\">Will SEC Have No Democratic Commissioners With The New Administration?<\/a><\/strong><\/p>\n<h2><strong>Much Of The Crypto Spot Market Remains Outside CFTC\u2019s Purview\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400\">While the CFTC has jurisdiction over commodity derivatives markets, including Bitcoin futures, much of the crypto spot market remains outside its purview.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, in an interview, Behnam highlighted the need to address the lack of comprehensive regulation for cryptocurrencies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Behnam described this gap as a critical issue, given the increasing adoption of digital assets by both retail and institutional investors.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cYou still have a large swath of the digital asset space unregulated in the US regulatory system,\u201d Behnam stated. \u201cIt\u2019s important\u2014given the adoption we\u2019ve seen by some traditional financial institutions and the huge demand for these products\u2014that we fill this gap.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">Behnam argued that many digital assets qualify as commodities and should fall under the CFTC\u2019s oversight. He called for Congress to grant the agency authority over cash markets for digital commodities, positioning the CFTC as a \u201cnatural fit\u201d to regulate this sector.<\/span><\/p>\n<p>It is worth noting that u<span style=\"font-weight: 400\">nder Behnam\u2019s leadership, the CFTC took harsh enforcement actions against major crypto players.<\/span><\/p>\n<p><span style=\"font-weight: 400\"> The agency\u2019s lawsuit against Binance\u2014the world\u2019s largest cryptocurrency exchange\u2014and its CEO Changpeng Zhao marked a watershed moment. The case alleged that Binance operated illegally in the US, circumventing compliance controls to maximize profits. This resulted in a $4.3 billion settlement.\u00a0<\/span><\/p>\n<h2><strong>CFTC v\/s SEC: A Turf War Over Crypto Oversight<\/strong><\/h2>\n<p><span style=\"font-weight: 400\">The regulatory landscape for cryptocurrencies in the US is complicated by jurisdictional overlap between the CFTC and the Securities and Exchange Commission (SEC).<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, current SEC Chair Gary Gensler asserted that most digital tokens are securities subject to his agency\u2019s rules. <\/span><\/p>\n<p><span style=\"font-weight: 400\">This ongoing debate has created confusion among market participants and hindered efforts to establish clear regulatory guidelines.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Behnam has consistently advocated for legislative action to clarify these roles. He estimates that up to 70% of digital assets should be classified as commodities, leaving security tokens under SEC oversight. Recent legislative proposals aim to formalize this division, but progress has been slow amid political gridlock.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cWhen we have two agencies contradicting each other about whether one of the most utilized stablecoins is a security or a commodity, we end up with uncertainty,\u201d noted Representative French Hill during a Congressional hearing on crypto regulation.<\/span><\/p>\n<p><strong>Explore:\u00a0<a href=\"https:\/\/99bitcoins.com\/news\/sec-reappointment-of-caroline-crenshaw-canceled-by-senate-banking-committee\/\" rel=\"bookmark\">SEC Reappointment Of Caroline Crenshaw Canceled By Senate Banking Committee<\/a><\/strong><\/p>\n<h2><strong>Ongoing Leadership Changes At SEC\u00a0<\/strong><\/h2>\n<p>Meanwhile, US President Elect- Donald Trump will have the opportunity to fill two vacant seats at the SEC: one previously held by Caroline Crenshaw and another by Commissioner Jaime Liz\u00e1rraga (Democrat).<\/p>\n<p>This reshuffling could result in a Republican-majority SEC that is more aligned with Trump\u2019s campaign promise to make America \u201cthe crypto capital of the planet.\u201d<\/p>\n<p>The SEC is on the brink of a significant political and ideological transformation. The crypto industry\u2019s successful lobbying efforts to block the renomination of Democratic Commissioner Caroline Crenshaw is proof!<\/p>\n<p>The move, which effectively ends her tenure, underscores the growing influence of crypto advocacy groups in shaping regulatory policy.<\/p>\n<p><strong>Explore:\u00a0<a href=\"https:\/\/99bitcoins.com\/news\/sec-reappointment-of-caroline-crenshaw-canceled-by-senate-banking-committee\/\" rel=\"bookmark\">SEC Reappointment Of Caroline Crenshaw Canceled By Senate Banking Committee<\/a><\/strong><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/can-crypto-industry-face-further-scrutiny-us-regulator-warns-of-oversight-gaps\/\">Can Crypto Industry Face Further Scrutiny? US Regulator Warns Of Oversight Gaps<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Rostin Behnam, outgoing chair of the Commodity Futures Trading Commission (CFTC),\u00a0has sounded the alarm on the need for oversight of digital assets.\u00a0 According to a 7 January 2025 FT report, Behnam emphasized that there are the risks posed by an unregulated crypto landscape. \u201cOver the past several years, a multitude of domestic and global events [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-6504","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6504"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6504\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}