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US Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam believes that non-banks, including cryptocurrency exchanges, will thrive if there is a clear regulatory framework in place. .
On September 28, at an event held at New York University School of Law (NYU), President Rostin Behnam said:
“Growth is possible if we have a well managed space. Bitcoin will double in price if the market is placed under CFTC regulation.”
Behnam further argued that a clear regulatory framework could pave the way for wealthy institutions to enter the market.
“The incumbents in the space only see a huge opportunity in terms of institutional capital flows if there is a regulatory structure around these markets.”
In early August, the US Senate passed a bill empowering the CFTC to oversee the crypto market. According to the leaders of the US Senate Agriculture Committee, crypto companies involved in the trading of Bitcoin and Ethereum will both need CFTC licensing as their primary regulator.
However, the weakness of the bill is that it is still unclear which tokens are securities (regulated by the SEC) and which tokens are commodities (under the jurisdiction of the CFTC). However, the bill still received praise from the chairman of the CFTC, especially for the provision that allows the agency to tax entities within its jurisdiction.
Over the years, although both are the leading financial watchdogs of the United States, the CFTC and the SEC (U.S. Securities and Exchange Commission) have clashed many times over the role of crypto industry regulation. . Due to different responsibilities, both are reluctant to issue independent guidance, instead of jointly setting a regulatory precedent and willing to take on the responsibility of overseeing the crypto market.
After all, the SEC side confirmed that it will allied with the CFTC to strengthen its tough measures against the crypto industry and continue to exercise supervision of the financial markets in the United States. Valerie Szczepanik, director of the SEC’s Center for Strategy, Innovation and Fintech, also confirmed that “the two agencies are still working quite well together.”
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