In a recent interview on CNBC, CFTC Chairman Rostin Behnam emphasized the critical need for updated regulations in the cryptocurrency space. As the industry grapples with challenges and a “turf war” between regulatory bodies, Behnam sheds light on the urgent call for comprehensive frameworks.
In addition, the interview delves into the recent developments involving Binance and the regulatory actions taken against the crypto exchange and its founder Changpeng ‘CZ’ Zhao.
Cryptos Are Commodities: A Regulatory Imperative
Commodities Futures Trading Commission (CFTC) Chairman Rostin Behnam, in a CNBC interview, asserted that most cryptocurrencies should be classified as commodities under existing laws. Addressing concerns over the lack of precise regulation in the digital asset space,
Meanwhile, Behnam highlighted the necessity for updated regulatory frameworks in light of the evolving technological landscape. In addition, he acknowledged the persistent challenges in regulating digital assets, citing an ongoing “turf war” between regulatory bodies, primarily the CFTC and the SEC.
Behnam expressed his concern over the lack of progress in establishing clear guidelines for governing the sector, emphasizing the need for Congress to intervene decisively. He said that there is a gap in crypto regulation, and Congress should step in to overcome this feeling of not wanting to legitimize the technology.
In addition, the CFTC Chairman also underscored the inadequacy of the current regulatory framework, urging Congress to play a pivotal role in legitimizing and integrating cryptocurrency technology into the existing financial system. His call to action reflects a consensus among regulators regarding the pressing need for updated laws that can effectively govern the burgeoning cryptocurrency market.
Also Read: Binance Launches Zero Fee Trading For SHIB, INJ, SAND; New Crypto Pairs
Binance’s Former CEO CZ To Face Jailtime?
Behnam expressed significant concerns about the use of cryptocurrencies in illegal activities, including terrorist financing. He highlighted the importance of Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations in combating these issues. The chairman also addressed specific challenges posed by stablecoins and the overall structure of the cryptocurrency market.
Regarding the recent developments with Binance, Behnam shared insights into the regulatory actions taken, emphasizing that Binance founder Changpeng Zhao (CZ) would face consequences, including jail time. This underscores the collaborative efforts of various governmental bodies to address issues related to the cryptocurrency industry.
Behnam’s remarks shed light on the complexities of regulating the dynamic and rapidly evolving cryptocurrency market. His call for more explicit regulation and Congressional action underscores the pressing need for a coordinated approach to govern this new financial frontier.
Also Read: Deutsche Bank, Others To Issue Euro-based Stablecoin
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