CFTC chairman confirms his agency will not regulate crypto via an enforced approach


Rostin Benham said that it may take nearly 1 year to four years to bring clarity over the crypto assets category.

The Commodity Futures Trading Commission (CFTC) is the second dominant crypto sector regulatory body. Over the last couple of years, the CFTC agency focussed on expanding its authority to regulate all those crypto assets, which falls under the category of commodities asset. 

Following the back-to-back lawsuit actions by the United States Securities and Exchange Commission (SEC), a gathering occurred among the crypto advocates & House Agriculture Committee. 

The CFTC chairman Rostin Benham said that the CFTC agency will move toward crypto regulation with perfect strategy, where it will ensure that laws will be clear enough for the crypto firms or businesses to follow.

Rostin admitted that CFTC’s regulatory efforts & approach will be slow enough and also for such an approach it will face criticism.

“So I think it’s easy for critics, which there are always critics, to say ‘oh they’re a quote light touch regulator because they’re a principles-based regulator,’” Behnam said.

Around a week ago, a new bill was proposed, aimed to bring a new rule for the cryptocurrencies to qualify their exact nature, whether they are security or commodity. 

Over this drafted bill, the CFTC chairman hinted that CFTC & SEC is not able to proceed such regulatory work with fast speed.

He said that if the agency will secure funding then surely the newly drafted bill will come into effect in the next 2 years but if new funding will not come then it may take up to four years. 

Recently the American securities regulatory body sued BinanceUS & Coinbase exchange and in that complaint, the agency labelled more than 10 crypto assets as a security.

On this matter, the CFTC chairman said that he will not pass any comment because the latest gathering occurred because of this matter & it will be early to comment on such things and also suggested crypto advocates wait for a couple of years to see better clarity.

Read also: American Securities regulatory body sues Coinbase crypto exchange