By Richard Hines
The Commodity Futures Trading Commission (CFTC), a U.S. regulator of futures, is seeking approval to extend regulatory reach over crypto firms.
The agency’s Acting Chairman Rostin Behnam made a request to the Congress to grant the CFTC greater jurisdiction to supervise and regulate cryptocurrency firms and the digital assets they operate with.
Request for Greater Jurisdiction over The Crypto Space
Behnam stated that the CFTC currently has limited jurisdiction over this growing crypto sector.
He argued that expanding the agency’s jurisdiction would help protect consumers and prevent fraud in the space.
He buttressed that virtual currencies and the underlying blockchain technology have a magnificent potential to reshape markets and evolve the business market conduct.
However, he believes that the CFTC’s ability to oversee and regulate this sector is limited and should be looked into and addressed.
Benhem stated that the CFTC has a strong track record of protecting consumers and safeguarding market integrity.
He believes granting the agency additional jurisdiction will allow it better protect consumers interest and prevent fraud in the market.
Behnam’s request comes amid growing concerns about the lack of regulation in the crypto space. Many experts have warned that the absence of effective and clear regulations could lead to fraud, manipulation, and other illegal activities.
Behnam emphasized the importance of preventing fraud in the crypto market, noting that it could sabotage the integrity of the financial system.
Reactions To This Request
The CFTC’s request for greater jurisdiction over the crypto sector has received support from some members of Congress.
Representative Patrick McHenry, Republican on the House Financial Services Committee, has also backed this request and has called for greater jurisdiction to be granted to this agency.
The CFTC is bestowed upon with a duty to protect consumers and uphold market integrity in the face of all adversaries.
McHenry stated that he strongly supports the Acting Chairman’s call for Congress to grant the agency additional jurisdiction to regulate virtual currency trading platforms and the digital assets they operate with.
However, not all lawmakers have been supportive of the CFTC’s request.
Some have raised concerns that expanding the agency’s powers could reduce innovation in the crypto market and hinder the development of new technologies.
The CFTC’s request for expanded jurisdiction over crypto firms highlights the ongoing debate over how to regulate this evolving crypto space.
As the crypto market continues to grow, it will be pertinent for regulators and lawmakers to strike a balance between protecting consumers and fostering development in the space.