The CFTC Chairman has stated that there will be major cryptocurrency enforcement actions within the next two years.
Rostin Behnam, chairman of the US Commodity Futures Trading Commission, said that as interest from retail investors and the value of cryptocurrency markets increase, so will enforcement actions.
Behnam said he expects the next “enforcement action cycle” to occur within the next six months to two years.
“From my perspective as a regulator, I think we will see another cycle of enforcement actions in the next six to 18 months or six to 24 months due to the cycle of asset valuation and interest from individual investors,” Behnam said. Conversation at the Milken Institute’s 27th Annual Global Conference. “Without the regulatory framework, transparency, and tools that we generally have as regulators, we will continue to see these frauds and manipulations.”
Behnam’s comments came after Robinhood Markets. exposed Securities and Exchange Commission staff released a statement on Monday. Preliminary decision via Wells Notice to recommend enforcement action against the cryptocurrency sector for alleged securities violations. Robinhood’s Wells notice was one of a handful of notices filed against the cryptocurrency company over the past month. ConsensisIt is a cryptocurrency company and decentralized cryptocurrency exchange that supports MetaMask Wallet. Uniswap They said they also received a Wells notice from the SEC last month.
Over the past year or so, the CFTC and SEC have taken several enforcement actions against cryptocurrency companies, including Binance and FTX.
stablecoin banknotes
Behnam was asked about the possibility of completing a stablecoin bill during Monday’s debate. House Financial Services Committee Chairman Patrick McHenry, R-N.C., and Top Democrat Maxine Waters, D-Calif. We have been working on a stablecoin bill for over 20 months.
“Even if you start calculating percentages, I think it’s still pretty low,” Behnam said, noting that there are fewer legislative days in Congress between election season and the holidays.
“There’s a lot of momentum, there’s a lot of desire. I think there’s going to be effort from members on both sides and leadership on both sides, but it’s hard to get legislation done these days,” Behnam added.
One issue has been who is the primary regulator of stablecoin issuers: the federal government or state regulators. There has been some discussion of including this bill in the upcoming must-pass Federal Aviation Administration bill, but that seems likely. unlikelya Democratic aide said last week.
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