Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam addressed the Financial Markets Quality Conference 2023 at Georgetown University and cautioned attendees about the persistent hazards associated with the cryptocurrency business.
Behnam issued a warning, noting that even with the shifts in market dynamics since the previous year, there is still a significant chance of another catastrophe like to the collapse of FTX.
Legal Loopholes Drawn Attention to by Behnam
Behnam drew attention to the fact that American authorities, like as the CFTC, still lack the power and resources necessary to successfully avert another big collapse in the bitcoin market.
CFTC Chief Warns: Crypto Market Vulnerable to Another Crash,CFTC Chief Warns: Crypto Market Vulnerable to Another Crash
He underlined that the CFTC has little authority over marketplaces that enable the trading of assets like Bitcoin. This restriction makes it more difficult for the CFTC to supervise business registrations and keep a close eye on their operations in the bitcoin space.
Behnam further pointed out that the Securities and Exchange Commission (SEC) only has regulatory authority over the securities markets, which leaves a big supervision gap for the larger digital asset market.
The Prospect of Another Financial Crisis
Behnam cautioned, “We might be in a situation where another FTX-type event occurs,” notwithstanding the lack of fervour for bitcoin investing compared to the time before the FTX crash.
Demand a Clearly Defined Regulatory Plan
Behnam emphasised how critical it is to have a precise and functional regulatory framework for virtual currencies. Reiterating what he had said earlier at a Senate Banking committee, he emphasised that the CFTC had limited authority to completely oversee the digital commodities market.
He emphasised that the CFTC and other regulatory agencies are limited in their capacity to proactively manage the risks related to the cryptocurrency market in the absence of the necessary legislative powers.
CFTC Chief Warns: Crypto Market Vulnerable to Another Crash,CFTC Chief Warns: Crypto Market Vulnerable to Another Crash,CFTC Chief Warns: Crypto Market Vulnerable to Another Crash , Crypto Market news, Crypto Market coin News