The American commodities regulatory body’s chairman confirmed that CFTC will try to regulate the crypto sector at a very small level.
The Commodity Futures Trading Commission (CFTC) is the second dominant regulatory body in the US, which regulates the crypto sector. The United States Securities and Exchange Commission (SEC) is a top financial regulatory body and is known for its strict enforcement actions against crypto firms.
On 18 May 2023, In an interview with Bloomberg’s Odd Lots podcast, The CFTC chairman Rostin Benham said that the CFTC agency has no legal power to regulate the crypto cash market and also said that agency have very limited authority to take action against fraud & manipulation.
“(We) don’t have the legal authority to police cash crypto markets. We do have this very limited authority within the CFTC to police cash markets if there’s fraud or manipulation,” the CFTC commissioner said.
Further Rostin confirmed that the CFTC agency will try to regulate the Crypto market in other possible ways e.g. issuing notices and advisories, and enforcement actions against the crypto companies & crypto asset providers which fall under the commodity laws violation.
Strangely the CFTC chairman admitted that the crypto sector is new to this world but claimed that traditional laws can be easily applied to regulate the sector.
SEC vs CFTC
Over the past couple of years, the CFTC body & the SEC body passed several contradictory comments over the nature of crypto assets on several occasions.
Once the SEC chairman Gary Gensler said that all the Crypto assets are security, except Bitcoin. But later the CFTC chairman said that Ethereum is also a commodity like Bitcoin, not security.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.