- Rostin Behnam, the chair of the U.S. Commodity Futures Trading Commission (CFTC), expects more enforcement actions against crypto firms in the next 6 to 24 months.
- Behnam stated that without a regulatory framework, regulators will continue to pursue crypto firms to protect investors from potential fraud and manipulation.
- The number of crypto-related enforcement cases brought by the SEC in 2023 was the highest since 2013, and the CFTC has initiated 47 actions in the digital asset commodities sector.
The chair of the U.S. Commodity Futures Trading Commission (CFTC) expects more enforcement actions against cryptocurrency companies in the next two years, even as the market continues to attract interest after the 2022 downturn.
Regulators Will Keep Pursuing Crypto Firms
Rostin Behnam, chair of the CFTC, said at a recent conference that the growth and investor interest in crypto will likely prompt another “cycle of enforcement actions” without proper regulations in place. He agreed that lawmakers should bring crypto into a regulatory framework to protect investors.
Recent Uptick in Crypto Cases
According to a report, the SEC brought the highest number of crypto-related cases since 2013 last year. The CFTC also said it initiated a significant number of actions against crypto firms in 2022, including the landmark settlement with Binance.US. Regulators have ongoing cases against major industry players like Kraken, Binance, and Coinbase.
Calls For Congressional Action
Behnam’s comments come as U.S. lawmakers await a House vote on a bill to define the SEC and CFTC’s authority over cryptocurrencies. The legislation could help bring regulatory clarity to the sector. However, without a proper framework, regulators will likely continue pursuing enforcement actions against crypto firms.
Conclusion
The CFTC chair’s remarks signal crypto companies should prepare for more scrutiny from regulators like the CFTC and SEC. While enforcement actions aim to protect investors, a lack of clear regulations has left firms in limbo. The impending Congressional bill could be a first step in providing guidance and guardrails for the nascent crypto industry.
