Rostin Behnam, the chairperson of the CFTC, discussed how the organization is attempting to stay up with the rapid advancements in financial technology despite having limited jurisdiction.
The Securities and Exchange Commission and the Commodity Futures Trading Commission of the US jointly have primary regulatory authority over cryptocurrencies. According to chairperson Rostin Behnam, the CFTC would undergo reorganization to become more proactive and comprehensive. LabCFTC, the central focus of the CFTC’s strategies to encourage responsible fintech innovation, will now be known as the Office of Technology Innovation (OTI) and will be under the chairman’s direct control.
CFTC Considering Remodelling of LabCFTC, Thinks It Will Increase Regulatory Efficiency:
To better assist brand-new retail players in the market, the commission’s Office of Customer Education and Outreach will be “realigned” within the Office of Public Affairs. Behnam noted, citing CFTC studies, that a substantial proportion of retail investors distinguishes the virtual currency market from traditional commodities. In the Bitcoin futures market, trading that is typical of retail investors accounts for about 25% of long open interest.
Behnam also pointed out that while finance technology has evolved, regulators have had collective analysis paralysis. Behnam did not always appear to be as resigned to operating within the confines of the agency’s current powers, which lack market supervision and surveillance capacity. He claimed in February that his organization’s reliance on tips and whistleblowers to uncover illegal activity gave it “a very, very narrow lens into what is actually happening in the market.” He spoke to the Senate Committee on Agriculture, Nutrition, and Forestry, which oversees his organization.
The Lummis-Gillibrand bill and the Digital Commodity Exchange Act have proposed legislation that would give the CTFC additional control over the crypto markets.