Regulation
Federal cryptocurrency legislation needed to protect investors and the US financial system from future risks, CFTC chairman says
The chairman of the Commodity Futures Trading Commission (CFTC) says the United States needs a regulatory framework to protect the public from the risks associated with cryptocurrencies.
In his testimony Ahead of a U.S. Senate Committee on Agriculture, Food, and Forestry hearing on digital commodities oversight, Rostin Behnam criticized Congress for failing to address the gap in cryptocurrency regulation.
“What has concerned me most throughout the expansion of this digital asset class is that, as ordinary Americans fall victim to one digital asset scam after another, there is still no comprehensive legislative response.”
Behnam says the CFTC should be given new rulemaking authority given the dangers posed by an unregulated cryptocurrency market. He says Congress should act quickly so regulators can provide basic protections for customers.
“As the digital asset market continues to integrate with traditional financial institutions, concerns will arise about the broader resilience of the market and perhaps even financial stability. In short, our current trajectory is not sustainable.”
Inaction, he said, will not kill public interest in digital assets and will only pose greater risk to investors and financial markets.
“Federal legislation is urgently needed to create a path to a regulatory framework that protects American investors and possibly the financial system from future risks.”
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