US should tighten regulation of digital assets, CFTC says

(ORDO NEWS) — The United States needs to strengthen the regulation of trading in digital financial assets and oversight of platforms that carry out transactions with them, said Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam in a statement.

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Behnam’s speech was dedicated to the collapse of the major cryptocurrency exchange FTX. The collapse of the exchange caused excitement in the crypto industry, and against this background, doubts about its future have arisen.

“We, as regulators, must answer questions about how this happened and how we will prevent a recurrence. At a turning point, we will find that the answer to both questions lies in the full regulation of the market,” he said as part of his speech at the hearing. in the US Senate.

US Treasury Secretary Janet Yellen said he showed the need for more oversight of cryptocurrencies. Benham also came out in support of Yellen’s approach, saying that the CFTC and the US Securities and Exchange Commission (SEC) should have “direct oversight” of these platforms.

“The CFTC and the SEC should have direct oversight of these platforms with the authority to oversee ongoing trading activity, conduct audits, and approve material changes to the platforms,” ​​Benham said.

The head of the CFTC also threatened “those who choose not to follow the rules” with consequences in the form of an “aggressive forceful response.”

Earlier in November, experts interviewed by RIA Novosti predicted that the United States would increase regulatory pressure on cryptocurrencies after the collapse of the FTX exchange, which showed the need for clear rules to protect investors and consumers.

Some reports claim that FTX’s financial troubles stem from the exchange lending client funds to Alameda Research, a cryptocurrency hedge fund created by FTX founder and former CEO Sam Bankman-Freed, who stepped down after FTX’s collapse. The fund lost money in several crypto trades earlier this year. If the fact of the transfer of funds is confirmed, it will be a flagrant violation of the rules of the financial industry. Also, without a regulatory framework, customers may never get their funds back.

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