Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), announced that he would continue his efforts on cryptocurrency regulations until the end of his term on January 20. In his final speech at the Brookings Institution, Behnam highlighted the lack of federal regulations surrounding crypto assets, stating that this gap increases risks in areas such as customer protection, market fraud, and financial stability. He emphasized the importance of regulations, pointing out that historically, financial areas left unregulated have always led to negative outcomes.
Behnam underlined the critical role of regulators in ensuring that innovations are implemented safely for consumers. He expressed a preference for a regulatory-culture approach rather than one solely focused on punitive measures and called on crypto innovators to develop safer practices in the industry.
Meanwhile, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, who is also set to step down on the same date, defended the use of enforcement measures in the crypto sector. In an interview with Bloomberg TV, Gensler stated, “This space has been built on noncompliance, and I’m proud of the work we’ve done on regulations.” With the end of Behnam and Gensler’s terms, a new era in U.S. crypto regulations is expected to begin.
