CFTC Chair Predicts Increased Regulatory Pressure on Crypto Industry

The growing interest of retail investors and the rising market capitalization of cryptocurrencies are leading to an expansion of enforcement actions within the industry. This was stated by Rostin Behnam, chairman of the CFTC.

During a panel discussion at the 27th annual Milken Institute conference, the official mentioned that he anticipates another “cycle of enforcement actions” over the next 6-24 months.

“Without a regulatory framework, without the necessary transparency, without the tools we typically use as regulators, you will continue to see all these frauds and manipulations,” Behnam added.

His comments came just days after Robinhood’s crypto division received a Wells notice from the SEC. This letter informs the recipient of securities law violations and the potential for a lawsuit. In April, the regulator sent a similar document to the largest decentralized exchange, Uniswap.

Over the past year and a half, the CFTC and SEC have filed legal claims against several major industry players such as Binance, Coinbase, Kraken, and KuCoin.

During the conference, Behnam responded to a question regarding the likelihood of the U.S. adopting a stablecoin bill. Previously, experts noted an increased chance of the document passing after it received support from House Financial Services Committee member Maxine Waters and Chairman Patrick McHenry.

However, the CFTC head assessed the probability of the bill’s adoption as “quite low.” He cited the limited number of working days in Congress during a presidential election year.

“There is significant momentum and a strong desire. I think congressmen from both sides will make every effort, there is bipartisan support from leaders. But passing the law in these days is difficult,” Behnam stated.

Earlier, CFTC Commissioner Caroline Pham suggested that in the case against KuCoin, the agency encroached on the powers of the SEC.