The new Chairman of the Commodities Trading Futures Commission (CTFC) says that crypto assets that are not considered securities need comprehensive legislation.
In a new government press release, Chair Rostin Behnam says there remains a gap in the regulation of crypto cash markets of non-security digital assets and that the CFTC is “well positioned” to fill the void.
Behnam goes on to say that regulations are needed to prevent catastrophic failures like we saw in 2022 and keep customers safe.
According to Behnam, 2022 being a tumultuous year for virtual assets filled with bankruptcies and fraud allegations only reaffirms the need for clear crypto guidelines.
“The crypto market was shaken to its core last year, on several different fronts. In my view the bankruptcies, failures, and runs only validate that action is needed. The ecosystem is vast, will not vanish, and needs comprehensive legislation.
The cryptoverse is not a closed system. Regulation is necessary to protect customers and to prevent failures which cannot predictably be contained within any boundaries across the domestic and global financial markets. Regardless of whether one or many occur in 2023 or 2033, we must act.”
The CFTC Chair, who was sworn in last month, says he plans to work with Congress and crypto stakeholders in an effort to regulate the nascent industry.
“There is a new Congress, and I will continue to engage and provide technical assistance to draft legislation, as requested.
Building on my earlier point regarding requests, the CFTC will also continue to engage with new stakeholders. The agency has processes and guiding core principles, and we are careful, deliberative and patient.”
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