CFTC Chairman urges legislation on digital assets, worries that Bitcoin physical trading funds are misleading the public

After the U.S. Bitcoin Spot ETF was launched on the 11th, many analysts believe that this product is the most successful ETF in history. However, there are concerns about the product.

Yesterday, Rostin Behnam, chairman of the U.S. Commodity Futures Trading Commission (CFTC), expressed concern about the risks of cryptocurrency and once again called on the government to legislate to regulate the product.

CFTC Chairman Calls for Legislation on Digital Assets

Yesterday, Behnam made it clear in his speech at the Lawyers Association event that the emergence of Bitcoin spot ETFs will package speculative and volatile assets into an indirect Regulated new products. He expressed concern about the lack of direct regulatory authority over digital assets, especially the risks that may arise from approving a Bitcoin spot ETF. He worries that even if warning signs exist, market participants, whether retail or institutional, may mistakenly confuse a product’s technical approval with actual regulation of digital assets. This confusion can lead to investors lacking a clear understanding of the actual risks of digital assets. Therefore, Behnam expressed concerns about Bitcoin ETPs receiving regulatory approval.

Behnam said that the lack of federal regulators with the authority to regulate cash markets such as digital assets is itself a potential risk. He urged Congress to act quickly to address the problem. The issue has been a focus of his campaign for the past six years. He emphasized the importance of regulating the spot market for digital asset commodities to prevent issues related to conflicts of interest and customer protection.

"There are no solid measures to address opaque and inconsistent practices in the digital asset cash market."

He emphasized that federal legislation for the digital asset market has become urgent, especially in the context of Bitcoin spot After the ETF is approved. He promised to continue calling for action.

It is worth mentioning that SEC Chairman Gary Gensler made it clear that the agency did not recognize Bitcoin when he issued a statement on the first day the product was approved.

"While we approved the listing and trading of certain Bitcoin spot ETP stocks today, we do not approve or endorse Bitcoin. Investors should be cautious about products related to Bitcoin and the value of the cryptocurrency Remain cautious because of the numerous risks associated with it.”

The CFTC has designated itself as the “prime law enforcement agency” for cryptocurrencies

Behnam also reiterated at the event the agency’s commitment to cracking down on bad actors in the cryptocurrency space. Promise of. In November last year, the CFTC established its status as the "primary law enforcement agency" in the field of digital assets. The agency mentioned in its report at the time that it filed a record 47 enforcement actions against digital asset commodity-related conduct in fiscal year 2023, accounting for nearly half of all 96 actions.

Well-known cases include the prosecution of the defunct FTX exchange and its founder SBF and its affiliated company Alameda Research, and the accusation that the world's largest cryptocurrency exchange Binance and its CEO Changpeng Zhao (CZ) violated the law Offering derivatives trading, as well as a case against bankrupt crypto lending company Celsius and its former CEO Alex Mashinsky.

Regarding the importance of legislation to assist in the regulation of cryptocurrencies, Behnam explained: As everyone here knows, this is only possible if we do so through regulated market surveillance and oversight, or through whistleblowing and reporting that we can pursue. We can only take action against digital asset fraud or manipulation when a complaint is made or an anomaly is discovered.

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