CFTC Chair Rostin Behnam emphasizes the need for Congress to pass legislation regulating crypto, citing Bitcoin's recent surge and the potential for regulatory gaps.
The head of the Commodity Futures Trading Commission, Rostin Behnam, has once more urged the U.S. Congress to take proactive steps in regulating the cryptocurrency market.
Speaking during his yearly testimony before the House Agriculture Committee on March 6, Behnam stressed the urgency of enacting legislation to define the regulatory authority over the crypto sector.
Referencing the recent surge in Bitcoin's value, Behnam underscored the necessity to address the regulatory gaps in the crypto space, warning against underestimating the potential for another wave of speculative fervor.
"We must take action; Congress must intervene to bridge this divide, particularly concerning Bitcoin, which is considered a commodity." Rostin Behnam, Chair of the CFTC
Behnam also discussed the Financial Innovation and Technology for the 21st Century Act (FIT Act). If passed, this legislation would empower the Commodity Futures Trading Commission (CFTC) to establish a regulatory framework for cryptocurrencies within a year, as Behnam highlighted.
In July 2023, the U.S. House Financial Services Committee voted on new cryptocurrency regulations. The majority of lawmakers supported the enactment of two critical bills: the Financial Innovation and Technology for the 21st Century Act and a regulatory definition of blockchain technology.
The primary objective of these laws is to establish a regulatory framework for digital assets, clarify the jurisdiction of both the CFTC and SEC, address issues related to stablecoin issuance, digital asset taxation, and consumer protection.
U.S. Treasury Secretary Janet Yellen also addressed concerns surrounding the instability of stablecoins, the risks posed by capital flight, and the volatility of tokens. Yellen urged Congress to pass legislation to tackle these issues, with a particular focus on regulating stablecoins and the spot market for cryptocurrencies not classified as securities.