Rostin Behnam, chair of the United States Commodity Futures Trading Commission (CFTC), anticipates ongoing regulatory actions against cryptocurrency firms as long as the market remains attractive to investors. Speaking at the 2024 Global Conference on May 6, Behnam highlighted the need for regulatory frameworks to address fraud and manipulation in the growing crypto market.
Behnam suggested that another cycle of enforcement actions could occur in the next 6 to 18 months, given the continuous appreciation of crypto assets and increased interest from retail investors. He emphasized the importance of regulatory transparency and tools to combat fraudulent activities in the absence of a regulatory framework.
Behnam supported the notion of bringing crypto firms into the regulatory framework, stating that U.S. lawmakers should take action in this regard. Legislation clarifying the roles of regulatory bodies like the SEC and CFTC over digital assets is currently under consideration in the House of Representatives.
A Cornerstone Research report highlighted a surge in crypto-related enforcement cases by the SEC in 2023, the highest since 2013. The SEC has pending cases against prominent U.S. crypto firms like Kraken, Binance, and Coinbase, and issued a Wells notice to Robinhood Crypto in early May, signaling potential enforcement actions.
Behnam disclosed that around one-third of all enforcement actions by the CFTC against crypto firms occurred in 2023. The Commission initiated 47 actions in the digital asset commodities sector, including cases against individuals like former FTX CEO Sam Bankman-Fried and former Celsius CEO Alex Mashinsky. Additionally, the CFTC played a role in the $4.3 billion settlement between Binance and U.S. authorities in November.
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