By Richard Hines
The Commodity Futures Trading Commission (CFTC) is an autonomous regulatory body in charge of the United States’ derivatives markets. Headed by Rostin Behnam, the agency has been stated by many to be partially responsible for the popular FTX crypto exchange crash.
As such, the chairman will have to appear and be questioned by US legislators in order to understand what really went down and to prevent similar future occurrences.
CFTC And The Failed FTX Exchange Had A Connection
The committee in charge of the Commodity Futures Trading Commission (CFTC) has said that it would organise an open sitting where the chairman of the CFTC would be thoroughly questioned about the role of his agency in the FTX’s fall and whether the agency could have successfully avoided the nasty crash.
According to the said body, since the CFTC is in charge of regulating and spotting fraudulent activities, it should have, one way or another, detected an anomaly in the FTX exchange way before it happened. Thus, it needs to be determined whether the CFTC genuinely did not catch a whiff or whether it knowingly looked the other way.
Prior to the announcement of the proposed interrogation session, the community found the number of meetings between the CFTC and Sam Bankman-Fried with other executives of the FTX Exchange suspicious, despite the disclaimer given by Rostin Behnam.
As the name implies, the hearing tagged “Lessons Learned From the FTX Collapse and the Need for Congressional Action” will have the participants ruminating over the mistakes that should be looked out for in the future. Also, the concept of a more robust and uniform set of regulations would be discussed.
Give The SEC Direct And Total Control Over The Crypto Industry – Gary Gensler
The Chairman of the U.S. Securities And Exchange Commission, Gary Gensler, has taken to the public to express his opinion about how his agency needs to have total and direct control over the cryptocurrency industry.
According to him, a large percentage of the cryptocurrencies in the market can be regarded as securities, and as such, the administration of anything related to them should be the SEC’s concern.
The Chairman went further to imply that the confusion as to which body should be in charge of the crypto industry is not necessary because it is crystal clear who it should be. According to him, the CFTC should only have direct authority over “the underlying non-security tokens.”