Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, indicated that cryptocurrency companies should anticipate increased enforcement actions from U.S. regulators over the next 6 to 24 months as retail interest in this asset class rises.
Behnam cautioned about the likelihood of “another cycle of enforcement actions” within the cryptocurrency sector during his remarks at the 27th annual Milken Global Conference on Monday.
The U.S. Securities and Exchange Commission (SEC) has been actively engaged in legal actions against various cryptocurrency firms and intensifying its enforcement on trading activities. Recently, the SEC is preparing to initiate a lawsuit against the cryptocurrency division of U.S. brokerage firm Robinhood Markets.
In the panel discussion, Behnam underscored the significance of regulation and consumer protection, referencing the events of 2022 that involved the downfall of the cryptocurrency exchange FTX.
“From my perspective as a regulator, we are likely to witness another cycle of enforcement actions in the next 6 to 18 months or 6 to 24 months due to this cycle of asset appreciation and interest from retail investors,” Behnam stated.
“Setting aside the legitimacy and potential future role of this technology in our economy, commerce, and the internet, we must consider these matters from a regulatory and consumer protection viewpoint,” Behnam added.
In March of this year, Behnam reiterated his appeal for Congress to enact legislation that clarifies cryptocurrency regulation. This request for congressional action was made during a hearing before the House Agriculture Committee.
Related Posts
Crypto Regulation is Lagging Behind
Behnam highlighted the urgency of the situation, pointing to the rapid expansion of the crypto market and its growing acceptance in mainstream finance. He emphasized the necessity for clarity regarding Bitcoin’s regulatory status, given its significant market share alongside Ethereum.
He urged Congress to promptly address the regulatory void, asserting that cryptocurrencies, particularly Bitcoin, are likely to remain a fixture in the financial landscape. Behnam’s call for action was spurred by inquiries into the CFTC’s budget amid increasing scrutiny and interest from lawmakers.
During the 27th annual Milken Global Conference on Monday, Behnam noted that despite the recent scandals of 2022, the cryptocurrency market continues to experience growth.
“There is sustainability to this asset class,” Behnam contended. “We have certainly had to navigate numerous adverse events in 2022 that, from a regulatory perspective, have validated many of the points I’ve been making for the past 5 or 6 years,” Behnam remarked.
“Despite the occurrences in 2022, we find ourselves in a growing market with increasing capital investment and rising market capitalization, along with renewed interest from many entrepreneurs,” Behnam concluded.
The post CFTC Chairman Says Expect Regulators to Crack Down on More Crypto Firms appeared first on Cryptonews.
