Gary Gensler questions CFTC’s inability to regulate cryptocurrencies! Human resources are far less than SEC

This site (120btC.coM): U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler and U.S. Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam attended the Senate Appropriations Subcommittee on the 13th hearings on their respective agencies’ budget requests, while senators also conducted broad inquiries on cryptocurrency regulation.

Can the CFTC regulate cryptocurrencies?

The Block reported that the U.S. House of Representatives passed a bill last month that would give the CFTC more power and funds to regulate cryptocurrencies. When Senator Dick Durbin asked Rostin Behnam why he thought the CFTC could be an effective regulator of cryptocurrencies, Regulatory Authority?

Rostin Behnam replied that there are gaps in the supervision of "non-security commodity tokens", the CFTC has done a good job in taking enforcement actions against cryptocurrency entities, and the CFTC has sufficient capabilities to supervise the markets it is authorized to supervise. , and if the CFTC is given the power to supervise the cryptocurrency market, he certainly hopes that the budget will be increased.

Dick Durbin also asked Gary Gensler, a former CFTC chairman, whether the CFTC can assume the responsibility of regulating cryptocurrencies. Gary Gensler responded: I think it depends on what powers they are given. The CFTC has no disclosure-based The institution, investors don't have these disclosures for products like corn or wheat or oil, it's a great institution, but it was set up for derivatives.

Seems to be an insinuation that the CFTC is not capable enough to assume the responsibility of regulating cryptocurrencies.

CFTC human resources are far less than SEC

It is worth noting that the U.S. House of Representatives passed the cryptocurrency market structure bill "Financial Innovation and Technology Act for the 21st Century" (FIT21) last month, and then also Needing to be sent to the Senate for consideration, this Republican-led bill, supported by the votes of 71 Democrats, gives the CFTC new jurisdiction over "digital commodities" and states that the SEC will supervise "digital commodities provided as investment contracts." Digital Assets".

Member Maxine Waters of the House of Representatives Financial Services Committee believes that the FIT21 bill will stretch the CFTC’s resources or weaken the CFTC’s enforcement of the financial industry. After all, according to the SEC’s official website, the SEC has 4,500 employees, but according to the fiscal year 2024 budget, the CFTC has only about 700 employees.

If FIT21 is successfully passed in the future, it remains to be seen whether the CFTC will have enough energy to implement supervision or whether it will significantly expand its staff.

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