- CFTC Chairman Rostin Behnam has hinted at more crypto regulation through crackdowns in the next 6-12 months.
- This follows the SEC’s Wells Notice to Robinhood’s crypto business, Robinhood Crypto.
- Behnam is advocating for comprehensive crypto regulation from Congress.
Expect more crypto regulation crackdowns in the next 6-12 months, says CFTC Chairman Rostin Behnam, following the SEC’s Wells Notice to Robinhood Crypto. Behnam is urging Congress for comprehensive crypto regulation.
More Enforcement Actions Predicted by CFTC Chairman
The digital currency ecosystem in the United States is under increased scrutiny from regulators, with many enforcements introduced in the past year. CFTC Chairman Rostin Behnam has indicated that more crackdowns are on the horizon.
Robinhood Crackdown Might Not End Crypto Regulation Push
According to Fox Business Correspondent Eleanor Terrett, Behnam anticipates a new cycle of enforcement actions in the cryptocurrency space within the next 6 to 24 months. The crackdown began with Robinhood, as the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice for its crypto business, Robinhood Crypto. The SEC alleges violations of Sections 15(a) and 17A of the Securities Exchange Act, potentially leading to a civil injunctive action, public administrative proceeding, and possibly a cease-and-desist proceeding against the crypto trading platform.
Behnam Advocates for Comprehensive Crypto Regulation
Last month, Behnam urged lawmakers to pass crypto regulation legislation. This regulation is projected to protect American investors and ensure the stability of the financial market. The CFTC chairman hopes to increase the commission’s oversight of digital assets. This demand from Behnam has more undertone beyond crypto regulation. Such guiding rules from Congress may help provide further clarity as the CFTC and SEC typically clash in providing crypto oversight.
CFTC Chairman Under Scrutiny from US Lawmakers
This prediction of further crackdown on the crypto world comes at a time when the CFTC chairman is also under scrutiny from lawmakers, with U.S. Senator Elizabeth Warren leading the charge on Behnam. The senators are calling for Behnam’s interactions and communications with Sam Bankman-Fried. Among the documents requested is a comprehensive record of all meetings, telephone conversations, and emails between Behnam and Bankman-Fried throughout the chairman’s term. As the CFTC prepares to ramp up its enforcement efforts, stakeholders in the crypto industry may face increased scrutiny on all fronts.
Conclusion
While the specifics of the upcoming enforcement actions remain to be seen, industry observers and participants are bracing up for a stricter regulatory environment. Given the volatility of crypto assets, the CFTC’s prediction could impact market sentiments in the coming days as investors look to protect their assets.
