CFTC Chairman: 70-80% of Cryptos Are Non-Securities

CFTC Chairman Rostin Behnam claims that 70-80% of cryptocurrencies are non-securities, calling for increased funding and regulatory authority to oversee the crypto markets. Behnam’s remarks came during a Senate Agriculture Committee hearing on Digital Commodities oversight.

Points

• CFTC Chairman claims 70-80% of cryptos are non-securities.
• Calls for increased funding and regulatory authority.
• Senate Agriculture Committee hearing on Digital Commodities oversight.
• CFTC’s operational capacity and resource challenges.
• Bill proposed to assign CFTC crypto oversight.

CFTC Chairman Rostin Behnam has asserted that 70-80% of cryptocurrencies are non-securities, advocating for increased funding and regulatory authority to oversee the crypto markets. Behnam’s remarks were made during a Senate Agriculture Committee hearing on Digital Commodities oversight.

Behnam Calls for Enhanced CFTC Authority

Behnam emphasized that the Commodity Futures Trading Commission （CFTC） is well-positioned to serve as the primary watchdog for the cryptocurrency industry. He highlighted the CFTC’s challenges, noting that the agency employs about 700 staff compared to the SEC’s 4,500 workers. Despite this disparity, over 50% of the CFTC’s litigation efforts have involved crypto fraud or digital assets.

“It is a staggering statistic for an agency that oversees a trillion-dollar market to allocate half its resources to a market for which it does not regulate or gets appropriated funds. It puts both markets at risk and exposes that there’s so much fraud in the crypto space,” Behnam said.

Bill to Assign CFTC Crypto Oversight

Senator Debbie Stabenow, chair of the Senate Agriculture Committee, introduced a bill to provide the CFTC with official crypto regulatory oversight. The proposed legislation focuses on centralized platforms like crypto exchanges rather than decentralized finance （DeFi）. It includes capital reserve requirements and cybersecurity compliance measures for digital asset service providers.

CFTC’s Role and Future Prospects

Behnam expressed confidence in the CFTC’s ability to regulate crypto markets effectively but stressed the need for a new regime with clear rules defining commodities and securities. Stabenow’s bill would also afford the CFTC recurring funding and constitutional authority to police digital commodity markets, including crypto spot markets.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

”`