Key Points:
- The Chairman of the CFTC said that the Commission is trying to strengthen the supervision of cryptocurrency transactions.
- The CFTC is also looking ahead to a pivotal 2023 with crypto enforcement actions.
- 20% of CFTC enforcement cases last year involved digital assets.
CFTC Chairman Behnam said his agency is preparing for another year of significant action in the crypto industry as he tries to strengthen its enforcement team.
The Chairman of Rostin Behnam, one of the US agencies trying to increase oversight of cryptocurrency trading, the Commodity Futures Trading Commission (CFTC), is looking ahead to a pivotal year with actual actions electronic money test. According to Behnam, in 2022, 20% of CFTC enforcement cases last year involved digital assets.
His agency is “working towards another strong year of precedent-setting cases,” Behnam said in remarks prepared for delivery Friday at an American Bar Association event. He said budget increases at the CFTC will help support “growing our enforcement and surveillance teams.”
“The CFTC has brought important, precedent-setting cases against those who failed to offer derivatives or leveraged, margined or financed digital asset products to US customers or operate within the United States,” he said. He promised to use “the full breadth of the commission’s authority” in going after illegal transactions in digital assets.
The top US financial regulator called on lawmakers to act quickly to establish a regulatory framework for digital assets following the spectacular collapse of a cryptocurrency exchange FTX.
According to the regulator, if the crypto sector goes unchecked, the consequences could spread to the rest of the financial system. Earlier, the CFTC Chairman also mentioned in the case of LedgerX, which did not file for bankruptcy with FTX, that because the CFTC manages it, customer assets are safe.
Furthermore, the CFTC advises crypto exchanges that want to serve ordinary investors to register with the federal market regulator.
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