Rostin Behnam, a candidate to lead the CFTC, told Congress that the agency should be granted the status of the leading federal regulator for the cryptocurrency market.
Today at 10:00 am ET: #SenateAg will hold a hearing to consider the nomination of Rostin Behnam to be Chair and Commissioner of the Commodity Futures Trading Commission. Watch LIVE: https://t.co/g42hMlnujx
— Senate Ag, Nutrition, & Forestry Committee Dems (@SenateAgDems) October 27, 2021
Behnam appeared before the Agriculture Committee, which oversees the CFTC’s work. Lawmakers considered his candidacy to chair the agency.
The acting head of the agency pointed to a number of recent enforcement actions taken by the regulator, including fines imposed on Tether and Bitmex.
“We are among the few frontline police on account of limited powers. This is the tip of the iceberg. The total market size of digital assets has reached $2.7 trillion. Of that, almost 60% are exchange-traded commodities. The Committee should consider expanding the CFTC’s powers.”, — he said.
When asked about the usefulness of expanding the CFTC’s toolkit, Behnam proposed developing a regulatory framework.
“Given the scale of this evolving market and the potential risks to financial stability in the future, it is crucial to define the primary regulator. The CFTC is ready to take on such a role,” he explained.
In Behnam’s view, operations in the digital-asset market create banking and prudential financial risks, as well as clearing and settlement risks.
As noted by SEC Chair Gary Gensler, the vast majority of cryptocurrencies qualify as securities.
In October Bloomberg reported that the Commission will regulate stablecoins.
Recently the media reported that the Biden administration is considering issuing an executive order for federal agencies. The document would require studying the crypto industry and to present appropriate oversight recommendations.
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