CFTC wants to increase oversight of cryptocurrencies

The Commodity Futures Trading Commission chairman spoke before the Senate Committee on Agriculture yesterday. In his speech, he advocated for his agency to be able to perform more cryptocurrency supervision.

CFTC is a federal agency in the United States that regulates futures and options markets.

This Fed agency has been around for a long time, but it has been given more power in recent years. It was established in 1974 as an independent agency of the United States government, and in 2008, it became part of the US Department of Agriculture under the Obama Administration.

CFTC seeks more control over cryptos

On 9 February, the Agriculture Committee held a hearing. It is a commission that traditionally deals with goods, and originally, these were agricultural products.

Chairman Rostin Behnam discussed the CFTC’s authority to prevent fraud and safeguard consumers during his hearing. He admitted that he does not have much power over the cryptocurrency market:

The digital asset market, which is now primarily regulated by state-run money lending licenses, is unique and presents the CFTC with various new challenges. Particularly considering our limited ability to control these unpredictable marketplaces. Indeed, no single regulatory authority, state or federal, has enough visibility into digital asset commodities trading activities to properly oversee conflicts of interest and misleading trading practices that affect retail clients.

Despite its limited powers, the CFTC is doing its best to combat fraud in the industry:

The CFTC has initiated roughly 50 enforcement actions, and it is supervising an increasing number of registered entities offering derivative products based on digital assets. It has built unique internal features to monitor this market’s technological advancements.

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