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The chairman of the CFTC discussed that his agency would regulate the crypto market. Digital Commodities Consumer Protection Act’s review was the reason behind the legislative hearing.
CFTC, The Commodity Futures Trading Commission shared its plan for regulating the crypto market with “full oversight capabilities” if the suggested Digital Commodities Consumer Protection Act becomes law.
Rostin Behnam, The chairman of the Commodity Futures Trading Commission (CFTC), discussed how in a legislative hearing, his agency would regulate the crypto market in a legislative hearing.
The reason behind the hearing was Digital Commodities Consumer Protection Act’s review. This act seeks to authorise CFTC “with exclusive jurisdiction over the digital commodities spot market.” Behnam told lawmakers, “Many digital assets constitute commodities … The CFTC’s expertise and experience make it the right regulator for the digital asset commodity market.”
As per Behnam’s stance, his agency “facilitates customer protections through its principles-based market oversight and disclosure regime aimed at ensuring transparency, integrity, and security of transactions.”
Behnam discussed that since 2014, CFTC has brought almost 60 enforcement digital asset-related cases. These cases include a recent incident that involved a $1.7 billion fraudulent bitcoin scheme.
According to the chairman of CFTC, “With a lack of full visibility into the digital commodity asset market, the agency’s enforcement program has had to lean primarily on tips and complaints from the public to identify fraud and manipulation,”
The chairman added, “While we are engaged in a comprehensive effort across the agency to police these markets and their participants with the tools currently available to us, the DCCPA will allow us to apply our full oversight capabilities without restriction.”
Chairman Behnam concluded the discussion by saying, “with the additional resources contemplated by the funding mechanism in the DCCPA and the clear mandates for customer education, outreach, and information gathering to ensure that our efforts reach all demographics of the investing community, … the CFTC can move swiftly in effectuating this new regime.”