CFTC Chair Behnam announces plan to penalize non-compliant crypto initiatives in 2023. At the ABA event, Behnam praised C FTC’s 69 digital enforcement moves, signaling its resolve to target misconduct in 2023.
Behnam reported that CFTC imposed $2B in penalties during 2022, with 20% related to crypto. Despite limited authority, the chair deems crypto enforcement impactful.
Today I spoke about the @CFTC‘s agenda for this year and what to expect from the commission this year. Check it outat https://cftc.gov/PressRoom/SpeechesTestimony/opabehnam31….CFTC oversees U.S. crypto derivative markets, including Bitcoin futures.
The Securities and Exchange Commission, being the sister agency, has consistently rejected proposals for a Bitcoin Exchange-Traded Fund. Furthermore, The reason behind this rejection is the Commission’s belief that the market is highly susceptible to manipulation.
Behnam highlights the importance of specific regulations to protect consumers and prevent cross-border consequences from potential failures. Behnam stated that action must be taken, whether in 2023 or 2033, to address the issue. He also expressed his willingness to offer technical support and participate in drafting legislative solutions, as requested by the new Congress.
Senators Stabenow, Boozman, and Thune proposed The Digital Commodity Exchange Act of 2022 to place crypto under CFTC oversight in Aug. 2022.
Additionally, Behnam adopts a dual strategy, different from the SEC’s dominant enforcement-focused approach. The recent downfall of FTX has prompted industry leaders such as MicroStrategy’s Saylor and Coinbase’s Armstrong to demand more transparent regulation.
SEC Chair Gensler remains steadfast in his belief that existing securities laws are sufficient, opposing new regulations. The SEC enforced its stance through 30 crypto actions in 2022, imposing $2.06 billion in penalties on ICO organizations.
SEC Imposes $2.06B In Penalties, 30 Crypto Actions Under Chair’s Firm Stance.
Moreover, SEC Chair Gensler holds firm in his stance against new regulations, asserting that existing securities laws are sufficient. The SEC demonstrated its authority through 30 crypto enforcement actions in 2022, resulting in $2.06 billion in civil penalties imposed on ICO-running organizations.
Behnam was the lone witness at a Senate Agricultural and Banking Committee hearing on Dec. 1, 2022, to address FTX’s collapse. He urged Congress to expand the C FTC’s authority during the hearing. The 2023 Congressional session began on Jan. 3, 2023, with multiple crypto bills vying for legislative attention.
On Feb. 14, 2023, the Senate Banking Committee will hold a hearing to examine the recent crypto market crash, including the collapse of FTX.
The Senate Banking Committee will hold the “Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets” hearing on Feb. 14, 2023, following the FTX collapse in November 2022. Ben McKenzie, a Hollywood actor, Bitcoin skeptic, and Shark Tank’s Kevin O’Leary testified at the previous hearing on Dec. 14, 2022.
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