- The remarks come as the crypto sector confronts increased scrutiny abroad.
- Given its limited resources, he said the CFTC has had to rely on tips, and complaints.
On Thursday, Rostin Behnam, chairman of the CFTC, predicted that Bitcoin’s value might “double in price” if it were sold in a CFTC-regulated market. The chairman noted that the crypto market has “a massive opportunity for institutional inflows that will only occur if there’s a regulatory structure.”
The remarks come as the crypto sector confronts increased scrutiny abroad. From Brazil to Australia to Tether’s well-documented legal difficulties home.
More Regulation Better Trust For Investors
On the other hand, governments in places like Japan and the United Arab Emirates look eager to embrace crypto and Web3. Seeing them as a development opportunity. The chairman, however, argues that the next wave of regulation for cryptocurrencies may not be all negative.
Behnam stated:
“Non-bank [crypto] institutions thrive on regulation, they thrive on regulatory certainty, they thrive on a level playing field, […] because they are the smartest, the fastest and the most well-resourced.”
Furthermore, Behnam said the CFTC lacked the capacity to pursue more extensive crypto regulation. That may help root out bad players in the market. Given its limited resources, he said the CFTC has had to rely on tips, complaints, and whistleblowers for the vast bulk of its investigations.
A measure proposed by the Senate Agriculture Committee would make the Commodity Futures Trading Commission (CFTC) the primary regulator of the cryptocurrency sector. And the chairman said he was in favor of this. The CFTC and the SEC are both now involved in the regulation of the industry in the United States. Therefore a clear specialization is necessary.
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