Rostin Behnam, chairman of the U.S. Commodity Futures Trading Commission (CFTC), said he expects the country's regulators to continue cracking down on crypto companies as long as the market attracts investor interest.
Speaking at the 2024 Global Conference held on May 6, Behnam said the crypto market will continue to grow in 2022 despite “bad events” that caused the market downturn and several companies declaring bankruptcy. He went on to say that it is attracting investors and entrepreneurs. Although he did not specifically say whether the CFTC or the Securities and Exchange Commission (SEC) was behind enforcement actions to protect investors, both regulators have A lawsuit is currently being filed.
“The cycle of rising asset values and interest from retail investors will likely trigger a new cycle of enforcement actions over the next 6-18 months or 6-24 months,” the CFTC chairman said. “Without a regulatory framework, without that transparency, without the tools that we normally use as regulators, we're going to continue to see this kind of fraud and manipulation.”
Mr. Behnum agreed with the moderator that the appropriate action would be for US lawmakers to incorporate crypto companies into the regulatory framework. House members are awaiting a floor vote on a bill clarifying the SEC and CFTC's role in digital assets that is out of committee in July 2023.
