Crypto: CFTC chief calls for ‘comprehensive’ rules to head off another FTX collapse

by | Dec 1, 2022 | Stock Market

The chairman of the Commodity Futures Trading Commission on Thursday made a plea for more rules governing the crypto industry, as lawmakers are probing what went wrong at the crypto exchange FTX. “If we are going to ensure that FTX and the other firms that are subjecting customers to billions in losses are appropriately regulated and held accountable, we need to act promptly to apply a comprehensive regulatory regime,” CFTC Chairman Rostin Behnam said in testimony prepared for delivery to a Senate Agriculture Committee hearing.

Now read: The Sam Bankman-Fried roadshow rolls on: 10 crazy things the FTX founder has just said The agriculture committee’s chairwoman, Sen. Debbie Stabenow, has authored legislation that would give the CFTC regulatory power over the crypto industry. Sam Bankman-Fried, who has resigned as the chief executive of FTX, was a supporter of the legislation. The hearing “will be crucial to assessing the future of this legislation and whether it still has the similar, strong bipartisan support it did prior to the recent crisis,” Beacon Policy Advisors wrote in a note on Monday. With crypto largely unregulated, there’s fierce debate in Washington about which agency should oversee the industry. Some consumer advocates, as the Washington Post noted earlier this week, say the CFTC is too lenient and less prepared than the Securities and Exchange Commission to police digital currencies. The SEC’s chairman, Gary Gensler, has called the Stabenow bill “too light touch.” Opinion: Win or lose, crypto investors find a reason to remain all-in — ‘nobody wants to get rich slow,’ advisers say Stabenow, a Michigan Democrat, defended her bill at the hearing, say …

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