The divide in the opinions of regulatory chairs within the U.S. financial industry is a glaring reality that could reshape the crypto landscape with its outcome. Secretary of the U.S. Commodity Futures Trading Commission (CFTC) – Rostin Behnam, underscored this divide in a speech he gave at the Futures Industry Association Expo.
Behnam discussed the need for fresh statutes to govern the crypto sector, citing that about 70% of the sector should be categorized as commodities. This view sharply contrasts with his counterpart Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), who maintains that existing securities laws are apt for the crypto arena.
The whole discussion paints the picture of two regulatory giants pitted against each other, interpreting laws and regulations for the same market in divergent ways – a situation with potential implications for the crypto world. Notably, Behnam’s viewpoint stresses on the enactment of new laws that would solidify the CFTC’s power to govern commodity tokens explicitly.
The CFTC’s involvement isn’t limited to the policy side. The Commission has undertaken substantial enforcement, with Behnam declaring that the Commission secured financial relief orders of more than $6 billion in the past year. Of these enforcement actions, approximately 34% involved misconduct associated with digital assets.
Interestingly, Behnam also shed light on the commendable legal victory against Ooki DAO. In its judgment, the U.S. District Court for the Northern District of California classified Ooki DAO as a ‘person’ under the 1936 Commodity Exchange Act (CEA). This critical event stirred up more profound discussions about the limitations of the old-fashioned CEA and its impact on customer protections and regulatory issues.
Behnam further underscored the importance of proactive measures towards cybersecurity, system security, and customer safety. He insists that a shift from a reactive to a proactive approach is imperative to safeguard the Commission’s objectives.
Overall, while the CFTC Chair’s stress on additional, specific regulations for the DeFi and crypto sectors diverges from the SEC Chair’s stand, both positions illuminate the crux of regulating a dynamic field like crypto. With both regulatory bodies fighting for jurisdiction, a unified, decisive approach continues to stand as a far-off goal for crypto regulatory affairs.
Source: Cryptonews
