For a long time, concrete steps have been expected from the US regarding the regulation of cryptocurrency markets. However, even the SEC is not convinced of the need for regulating crypto. Gensler is trying to define the boundaries of crypto markets with rules that are almost 90 years old. However, we see that even the courts have made contradictory decisions on this issue.
Statements by the US CFTC on Crypto
The Chairman of the US Commodity Futures Trading Commission made statements on cryptocurrencies at DC Fintech Week today. Behnam has a cautious approach to the crypto sector, but not as strict as Gensler. In fact, he argues that a significant portion of crypto should be considered as commodities. This significantly reduces the sanctioning power of the SEC.
In his statement at DC Fintech Week, Behnam said that the CFTC and the Securities and Exchange Commission have been successful in working together and have achieved good results in the past. Behnam argues that due to the unique nature of crypto, more work needs to be done by Congress.
“This field is extremely new. Congress really needs to give us direction on whether we need to be consistent with the Howey Test model in Congress or whether there is a new model or framework for us to think about digital tokens in a different way. The issues we can solve between the SEC and the CFTC will become possible from now on.”
Regulation of Cryptocurrency
The SEC is currently trying to discipline cryptocurrencies through sanctions. The CFTC has also filed lawsuits against some companies in the crypto field, albeit to a lesser extent. Binance is one of the crypto brands that has been sued for providing unregistered services and being involved in various crimes.
Behnam has repeatedly emphasized the view that crypto has “great potential” and that Congress should intervene considering its growth.
“I think this field has great potential. So, I don’t think anyone can deny this, as long as I try to be as objective as possible as a regulator, not a market participant.”
So far, the SEC has filed over 100 crypto cases, and the CFTC has filed 49 cases, including against Binance and its CEO Changpeng Zhao, Celsius, and former CEO Alex Mashinsky.
