The Strategist

U.S. watchdog proposes to tighten control over crypto market because of FTX bankruptcy

12/05/2022 - 09:28

Rostin Behnam, chairman of the U.S. Commodity Futures Trading Commission (CFTC), demanded that his organization receives regulatory control over the cryptocurrency market as soon as possible to prevent incidents like the FTX fiasco in the future.

Ivan Radic
Ivan Radic
Mr. Behnam made this statement during the opening U.S. Senate hearing on the defunct Bitcoin exchange. "The gap that currently exists worries me. Customers will continue to lose money if we don't take action, and we'll be back here in a few months," the head of CFTC stated.

A few months ago, Mr. Behnam vigorously promoted the CFTC's regulation of the Bitcoin sector. Together with other senators, he submitted a bill in August to give the CFTC authority to oversee the Bitcoin sector.

Exchanges shouldn't be permitted to gamble with the money they receive from customers for trading, according to committee head Debbie Stabenow. They also shouldn't be permitted to create items with little to no inherent value and accept them as collateral for loans. Additionally, they shouldn't be permitted to negotiate with themselves. The measure to transfer the CFTC's oversight of cryptocurrencies would, in Ms. Stabenow's opinion, address the issues that resulted in the collapse of FTX.