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CFTC Chairman urges Congress for clearer crypto regulations

CFTC Chairman urges Congress for clearer crypto regulations

GrafaGrafa2024/10/22 03:30
By:Liezl Gambe

Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), called on Congress to urgently establish comprehensive regulations for cryptocurrencies and prediction markets. 

Speaking at the annual Securities Industry and Financial Markets Association (SIFMA) meeting, Behnam highlighted significant gaps in the current regulatory framework, stressing the need for clear legal guidelines amid the rapid growth of digital assets and evolving technologies. 

Behnam voiced concerns that existing regulations are inadequate to manage the complexities of the crypto market effectively. 

“The increasing relevance of digital assets and ongoing technological advancements require urgent and comprehensive regulatory action,” Behnam stated. 

He specifically pointed out the ambiguities surrounding the regulation of spot markets and the broader implications of blockchain and tokenisation within the financial industry. 

On prediction markets, Behnam underscored the legal and ethical challenges posed by contracts based on event outcomes. 

He expressed frustration over the CFTC’s role in enforcing restrictions on such markets without clear legislative direction. 

“We are being pushed into the role of ‘election police’ without the necessary guidelines,” Behnam noted, urging Congress to establish clear rules in this area. 

His comments come after a legal dispute between the CFTC and the prediction market platform Kalshi, which escalated when the agency blocked Kalshi’s attempt to offer election-based contracts. 

In September 2023, a federal court ruled that the CFTC had exceeded its legal authority, prompting the agency to file an appeal. 

Behnam emphasised the critical need for Congress to update existing laws to keep pace with rapid financial and technological advancements. 

He argued that clear regulations would provide greater transparency and stability, creating a more predictable environment for market participants and regulators alike.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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