CFTC chief foresees Bitcoin price rise as oversight takes hold

Regulation of the digital asset market under the leadership of the CFTC could bring significant benefits, including a potential rise in the price of the leading cryptocurrency. This was stated by the agency’s head Rostin Benham, according to CoinDesk.

“Bitcoin could double in price if there is space regulated by the CFTC,” — the official predicted.

According to him, a clear regulatory framework could remove barriers to institutional investors entering the market.

“Non-bank crypto institutions will flourish under regulatory clarity. They may disagree about the type of regulation, but they need this clarity,” — Benham explained.

The official also stated his support for the consumer-protection bill for digital goods.

If approved, the CFTC would gain authority to regulate the cryptocurrency market. In particular, the document envisages the agency’s power to set fees on organizations that must register with the Commission.

“The Congress is currently funding us. We are constantly mindful of how much funding will be provided. We feel the negative effects of five or six years of it being fixed,” — the official explained.

The CFTC’s limited budget and disagreements with the SEC over the scope of authority to oversee the industry have affected the agency’s ability to effectively combat crime, he added.

“We do not have traditional market surveillance tools—monitoring trading platforms, broker-dealers or intermediaries in similar positions. […] These are the things we are a bit short on—not due to a lack of effort, but due to a lack of jurisdiction,” — Benham explained.

As a reminder, in July 2022 the CFTC announced the creation of the Office of Technology Innovation, which will take charge of regulating the industry.

In September the agency filed a lawsuit against Ooki DAO, established in 2021 to oversee the DeFi platform bZx, as well as holders of its tokens.

SEC Chair Gary Gensler said that he would support granting Congress additional powers to regulate the cryptocurrency market for the CFTC.

Earlier the official repeatedly asserted, that most digital assets fall under the definition of securities and the jurisdiction of his agency.

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