According to CFTC Chairman Behnam, who spoke at Monday’s 27th annual Milken Global Conference, “another round of regulatory measures” is likely to follow the crypto industry.
Rostin Behnam, head of the Commodity Futures Trading Commission (CFTC), has said that, as consumers interest in cryptocurrencies grows, U.S. authorities will take more enforcement action against cryptocurrency businesses in the next six to twenty-four months.
The SEC has been increasing its crackdown on trading and aggressively pursuing legal challenges against many crypto businesses. U.S. stockbroker Robinhood Markets’ bitcoin division is the latest target of an impending SEC lawsuit.
Bringing attention to the circumstances surrounding the collapse of the cryptocurrency exchange FTX in 2022, Behnam emphasised the significance of regulation and consumer protection throughout the panel discussion.
The current cycle of asset appreciation and interest from individual investors, in Behnam’s view as a regulator, will likely lead to another round of enforcement proceedings in the next six to eighteen months or twelve to twenty-four months.
Adding to what Behman says, “We need to look at things from a regulatory and consumer protection angle,” referring to the need to consider the potential impact of digital assets on the economy, commerce, and the internet, as well as the validity of the technology in question.
It was in March of this year that Behnam renewed his request that Congress establish laws clarifying crypto regulation. The House Agriculture Committee heard the plea for action at a hearing.
Behnam stressed how critical the issue is, pointing to the growing general acceptance of cryptocurrencies and their fast market expansion. He brought attention to the fact that Bitcoin and Ethereum both have significant market shares and emphasized the importance of determining Bitcoin’s regulatory status.
He stressed that cryptocurrencies, namely Bitcoin, are not going anywhere and begged Congress to fill the regulatory void immediately. Enquiries into the CFTC’s budget spurred Behnam to issue a demand for action, adding to the growing attention and interest from lawmakers.
Despite the several controversies that rocked the cryptocurrency business in 2022, Behnam said at Monday’s 27th annual Milken Global Conference that it is still growing.
“This asset class has sustainability,” Behnam says. According to Behnam, “from a regulatory point of view, it has very clearly proven a lot of things I’ve been saying for 5 or 6 years” due to the several negative occurrences that occurred in 2022.
“Regardless of what transpired in 2022, we are seeing a rising industry, increasing capital investment and market capitalization, and, I believe, a resurgence of enthusiasm from many entrepreneurs,” Behnam said.
Also Read: The Australia Tax Office Examines The Client Data And Bank Information Of Cryptocurrency Exchanges
