- According to CFTC Chairman Rostin Behnam, the provision of a regulatory framework would make way for incumbent institutions to experience institutional inflows.
- Recently, the leaders of the Senate Agriculture Committee proposed a bipartisan bill that could see the CFTC become the regulator for the crypto industry.
The United States has been making efforts to regulate the crypto industry with a couple of bills submitted to Congress awaiting approval. For the past couple of years, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been claiming responsibility for the crypto market.
According to CFTC Chairman Rostin Behnam, the crypto industry could benefit from a CFTC-led regulation. He believes that this could remove all regulatory uncertainties and restore investors’ confidence. In this case, Bitcoin could double its price.
Growth might occur if we have a well-regulated space. Bitcoin might double in price if there’s a CFTC-regulated market.
Behnam is known for his constant calls for regulatory clarity for market participants. According to him, the provision of a regulatory framework would make way for incumbent institutions to experience institutional inflows.
Non-bank [crypto]institutions thrive on regulation, they thrive on regulatory certainty, and they thrive on a level playing field. And they may say otherwise, they might bicker about the type of regulation – but what they love most is regulation because they are the smartest, the fastest, and the most well-resourced. With those attributes, they can beat everyone else in the market.
CFTC is set to be given control over the crypto industry
Recently, the leaders of the Senate Agriculture Committee proposed a bipartisan bill that could see the CFTC become the regulator for the crypto industry. In this case, its authority would extend to the crypto spot markets.
This means all crypto trading firms would have to register with the agency. Behnam believes that the bill that would allow cash-strapped agencies to impose levies should be well considered if the CFTC wants to regulate the industry.
For now, the dual issues of jurisdiction over the crypto industry as well as its allocated budget do not help CFTC effectively deal with crypto crime. According to him, the over 60 cases received is just a tip of their abilities, and even that, they had to rely on whistleblowers, customer complaints, and tips. He further disclosed that they do not have the traditional surveillance tools, and market oversight tools to effectively monitor the various trading platforms. He believes that these are serious challenges that nullify their effort.
We are [currently]appropriated money by Congress, and it has put us in a position where we feel like we’re constantly on edge about how much money we will be appropriated. We are still feeling the wounds and scars from about five or six years of flat funding.