Will Congress fix crypto regulation before it’s too late? Behnam says the lack of legal clarity leaves the CFTC “handcuffed” as the crypto market continues to evolve.

CFTC is “handcuffed”

U.S. Commodity Futures Trading Commission Chair Rostin Behnam is raising concerns, and it’s not just about the growing complexity of the crypto market. 

Behnam, a longtime advocate for clearer rules in the digital asset space, is now urging Congress to address two critical issues: crypto regulation and election betting.

In recent remarks at a key industry meeting, Behnam irked that as technological disruption accelerates, the absence of clearer legal frameworks leaves regulators like the CFTC “handcuffed.”

Without action from Congress, the risks to both investors and the integrity of U.S. markets will continue to rise. But with an election year approaching and political obstacles mounting, will lawmakers act in time to close these gaps — or will we remain in the dark?

The unfinished business of crypto regulation

Behnam’s call for action on cryptocurrency isn’t new, but the stakes have never been higher. The quick ascent of digital assets, from Bitcoin (BTC) to decentralized finance, has left the regulatory framework struggling to catch up.

Several bills, like the Financial Innovation and Technology for the 21st Century Act, aim to provide some clarity, but they remain stuck in legislative limbo. 

FIT 21, which passed the House of Representatives earlier this year, would grant the CFTC greater authority over “digital commodities” like Bitcoin. However, progress has yet to be made in the Senate.

FIT 21, for instance, proposes clearer tests to determine whether a digital asset is a commodity or a security, but it also raises new questions.

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Author: Ankish Jain