Rostin Behnam, chairman of the US Commodity Futures Trading Commission (#CFTC ), anticipates that regulations on crypto companies will be tightened by the country’s regulators. This will happen as long as the market continues to attract investor interest.
A growing market despite challenges
Speaking at the 2024 World Conference on May 6, Behnam stressed that despite the “bad events” of 2022, which led to a market slowdown and the bankruptcy of several companies, the cryptocurrency market continues to grow and attract investors and entrepreneurs. He did not specify whether the CFTC or the Securities and Exchange Commission (#SEC ) would be behind regulatory actions to protect investors, but both regulators have lawsuits pending against numerous cryptocurrency companies.
Regulatory action plans
Behnam said that we are likely to see another round of regulatory action in the next 6 to 18 months, or even 6 to 24 months, due to asset appreciation and retail investor interest. He stressed that without an adequate regulatory framework, transparency and the tools typically used by regulators, fraud and manipulation will continue to run rampant.
Call for clear regulations
Behnam agreed with a moderator that bringing cryptocurrency companies within the regulatory framework was the right step to take. Members of the House of Representatives are awaiting a vote on legislation that could clarify the roles of the SEC and CFTC on digital assets, which passed out of committee in July 2023.
Regulatory actions in progress
In January, a report by Cornerstone Research revealed that the number of cryptocurrency-related regulatory action cases brought by the SEC in 2023 was the highest since 2013. The SEC has cases pending against US cryptocurrency companies such as Kraken, Binance and Coinbase, and issued a Wells Notice, generally a prelude to regulatory action at Robinhood Crypto on May 4.
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