CFTC claims bringing the crypto industry “into the light” does not address enforcement.
Digital currencies have been the topic of innumerable debates ever since it was introduced. Supporters of the space see endless possibilities for a decentralized yet secure exchange medium. On the other hand, its opponents are apprehensive about the high volatility of cryptocurrencies. The bottom line is the U.S. DOJ or Department of Justice has been giving a lot of focus on controlling crypto-related offenses.
Rostin Behnam, the chairman of Commodity Futures Trading Commission expects the Congress members to address the lack of enforcement authority of the Commission in cryptocurrency space.
CFTC chair feels the commission has limited authority
Behnam recently told lawmakers that the authority of the CFTC was at present restricted to addressing manipulation and fraud of digital assets. However, he felt the regulatory framework is still not clear. He further mentioned that there was a patchwork of enforcement and regulation authority at present at various government agencies.
The chair also shared that the majority of the actions taken by the agency have mostly relied on whistleblowers and tips in the last 7 years. So, it was mostly the whistleblowers and tipsters who revealed the illicit activities and crypto scams to the attention of the CFTC.
He revealed that there were many crypto assets or exchange-traded derivatives on registered CFTC exchanges. On the other hand, there is limited visibility of the underlying market, according to him. Behnam feels it is not a regulated market. The commission is unable to see a lot of things due to its limited authority.