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The chair of the Commodity Futures Trading Commission (CFTC) indicated that the agency cannot oversee the cryptocurrency market without changes to legislation. However, the progress on establishing a regulatory framework for digital assets in the U.S. has come to a standstill. At the same time, the president of the Federal Reserve Bank of Minneapolis contends that cryptocurrency should not be regulated but rather prohibited, as it is primarily utilized for unlawful activities.
During the annual Securities Industry and Financial Markets Association (SIFMA) conference in New York, CFTC Chair Rostin Behnam remarked that the agency is encountering significant obstacles due to the delays in formulating legal regulations for the cryptocurrency sector.
Behnam noted that without suitable legislation, the agency is “handcuffed,” which leaves investors and cryptocurrency users in the nation at risk. “Attempts to establish a legislative framework for regulating the digital asset sector have stalled thus far,” Behnam stated, emphasizing that the absence of regulation is hindering institutional investors and obstructing the integration of technology into conventional finance.
Kenneth Bentsen, President of SIFMA, also expressed dissatisfaction with the current circumstances, highlighting the increasing frustration within the financial sector regarding the ambiguity surrounding enforcement matters. He mentioned that brokerage firms are steering clear of digital assets due to concerns about potential regulatory enforcement actions.
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Both Behnam and Bentsen conveyed optimism that the forthcoming elections might alter the landscape, allowing a new Congress and president to expedite the establishment of essential regulations. A possible Republican victory in the U.S. elections could enhance investments in cryptocurrencies. As reported by CoinShares, investment products linked to digital assets attracted $2.2 billion last week.
Nonetheless, not all U.S. officials are convinced that the cryptocurrency market requires regulation. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, asserted that cryptocurrency promotes criminal activity, complicates financial oversight, and that digital assets will never be integrated into the financial system. He believes that cryptocurrencies should be banned rather than regulated. Kashkari supported his assertions with a report from the Federal Reserve Bank of Minneapolis, which suggests that Bitcoin and other cryptocurrencies should either be taxed or prohibited to address the country’s deficit.
Kashkari further stated that Bitcoin does not function as a medium of exchange or a store of value like traditional currency, is mainly used for illegal activities, and lacks intrinsic value. However, data contradicts the official’s claims. According to Chainalysis, only 0.34% of all cryptocurrency transactions in 2023 were associated with any illicit activities.
U.S. officials are keenly focused on regulating the cryptocurrency market, particularly the stablecoin sector, whose significance in fortifying the financial system is acknowledged even by the Fed.
Сообщение Creation of Regulatory Framework for Crypto in U.S. Stuck появились сначала на CoinsPaid Media.
