CFTC to create new division to oversee cryptocurrencies

CFTC Chairman Rostin Behnam announced the creation of the Office of Technology Innovation, which will regulate the crypto industry.

During a Brookings Institution–organised panel, The Future of Crypto Regulation, Behnam said:

“We have passed the incubation phase. Digital assets and decentralized technologies have outgrown their sandboxes.”

The new department will replace the agency’s existing fintech division, LabCFTC. In addition to the renaming, the CFTC will expand the division’s staff. Employees will have the opportunity to undertake internships to gain experience in digital currencies.

In June, Senators Cynthia Lummis and Kirsten Gillibrand introduced a bipartisan bill to regulate the crypto industry. According to the provisions of the bill titled ‘Responsible Financial Innovations Act’, the majority of cryptocurrencies fall under the CFTC’s jurisdiction as digital commodity tokens.

Behnam said that he is encouraged by legislative efforts to form a more consistent regulatory approach. This would bolster efforts to counter illicit activities that harm investors, he added.

“The absence of comprehensive regulation applicable to market participants in digital assets has led to inconsistent practices in areas such as trade execution, conflicts of interest, reporting, and cybersecurity,” the official noted.

Back in October 2021, Behnam, as a candidate for the CFTC chair, proposed making the agency the main regulator of the cryptocurrency market. He was confirmed to the post in December.

In June 2022, Securities and Exchange Commission Chair Gary Gensler said he planned to enter into agreements with the CFTC and other federal agencies to strengthen oversight of the industry.

Follow ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.