CFTC Has No Power To Regulate Cash Crypto Markets, Admits Chairman

Commodity Futures Trading Commission (CFTC) has no power to regulate cash crypto markets, admits chairman. According to Commodity Futures Trading Commission (CFTC) chairman Rostin Benham, his agency lacks the legal authority to regulate cash crypto markets.

In a recent interview, Benham clarified that the CFTC’s jurisdiction is limited to addressing fraud and manipulation in cash markets.

However, he emphasized that the CFTC will still regulate the crypto sector through other means to protect investors. Benham considers many cryptocurrency tokens as commodity financial assets, allowing the application of regulations, notices, advisories, and enforcement actions.

This aligns with his previous statements in March, where he classified assets like Ethereum and stablecoins as commodities.

Despite the unique challenges presented by cryptocurrencies, Benham believes that existing policy approaches can be adapted to address them.

It is noteworthy that the CFTC and the U.S. Securities and Exchange Commission (SEC) are the two main government agencies responsible for regulating the cryptocurrency space.

While SEC chair Gary Gensler believes the CFTC should regulate certain assets without overriding the SEC’s authority, Benham contends that the CFTC should oversee assets that are not considered securities.

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