CFTC Chair Behnam Urges Congress to Act on Digital Assets
In testimony before the Senate Committee on Agriculture, Nutrition, and Forestry, CFTC Chair Rostin Behnam urged Congress to move quickly on a "thoughtful" regulatory approach for digital assets.
Mr. Behnam said that the collapse of cryptocurrency exchange FTX highlighted the need for a regulatory regime that establishes consumer protections. He noted that the CFTC does not have authority over cash digital commodity markets beyond anti-fraud and manipulation authority. He restated his encouragement of congressional action to contemplate shared responsibility between the CFTC and SEC over digital assets, with the SEC having authority over "security tokens."
Mr. Behnam cited LedgerX, an FTX subsidiary, as an example of CFTC regulation working successfully, noting that the firm has not filed for bankruptcy and that based on CFTC knowledge and information, "LedgerX customer property remains secure . . . and [the firm] has the financial resources to continue operating for the foreseeable future." He contrasted the protections put in place at LedgerX from the lack of operational and legal safeguards around customer property at unregulated crypto trading firms.
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