CFTC will open new education office to increase regulatory efficiency as the chair Rostin Behnam spoke about how the agency is lacking broad authority so let’s read more today in our latest cryptocurrency news.
The US Commodity Futures Trading Commission which shares most of its regulatory responsibilities with the US SEC will undergo restructuring to become more comprehensive. The LabCFTC was described as the focal point for the CFTC’s efforts to promote responsible fintech innovation and will become the Office of Technology Innovation and will report to the chairman’s office directly. Behnam added:
“We are now engaged in a more proactive and comprehensive effort across the agency to regulate these markets with the tools currently available to us. Our core policy divisions are now directly addressing how the CFTC can leverage our existing authority to bring important regulatory protections to this market.”
The commission’s Office of Customer Education and Outreach will be realigned with the Office of Public Affairs to serve better the retail participants and the high level of retail participants that will distinguish the digital assets market from other commodities as Behnam added:
“Trading indicative of retail participants makes up approximately 25% of long open interest in the Bitcoin futures market.”
Behnam was compliant with regulators’ collective analysis paralysis while the financial tech surged ahead. Behnam wasn’t always as happy to worth with the current authorities which lack market surveillance and oversight abilities. He told the senate agriculture committee which lacks market surveilance and said that its dependence on tips to uncover illicit activity is actually happening on the market already. The CFTC will open a new education office and the legislative proposals like the Lummis-Gillibrand bill and Digital Commodity Exchange Act granted the CFTC more authority over the crytpo markets.
As earlier reported, Bitcoin might soon see new legislation that can define the asset class as a commodity and leaves years of legal uncertainty behind it. The bipartisan congressional attempt to grant authority in the crypto industry to the CFTC as opposed to the US SEC which has held sway over the industry and can move to a vote as soon as the end of this year as per Senator Kirsten Gillibrand as a co-sponsor of the bill .