Crypto Regulation: CFTC Chair Predicts More Crackdowns In 6-24 Months

The digital currency ecosystem is under the watchful radar of the regulators in the United States, stirring new twists in crypto regulation enforcement. With many enforcements introduced in the past year, Rostin Behnam, the Chairman of the Commodity Futures Trading Commission (CFTC) has hinted that more crackdowns are ahead.

Robinhood Crackdown Might Not End Crypto Regulation Push

According to an update from Fox Business Correspondent Eleanor Terrett, the CFTC chairman anticipates a fresh cycle of enforcement actions in the cryptocurrency space within the next 6 to 24 months.

The crackdown commenced with Robinhood as the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice for its crypto business Robinhood Crypto. The SEC is alleging violations of Sections 15(a) and 17A of the Securities Exchange Act. There is the likelihood of a civil injunctive action, public administrative proceeding, and possibly a cease-and-desist proceeding against the crypto trading platform.

Last month, Behnam, in an address to lawmakers urged them to pass crypto regulation legislation. This regulation he advocated for is projected to protect American investors as well as to ensure the stability of the financial market. The CFTC chairman hopes to increase the commission’s oversight of digital assets.

This demand from Behnam has more undertone beyond crypto regulation. Such guiding rules from Congress may help provide further clarity as the CFTC and SEC typically clash in providing crypto oversight.

CFTC Chairman is also Under US Lawmaker’s Radar

This prediction of further crackdown on the crypto world comes at a time when the CFTC chairman is also under scrutiny from lawmakers, with U.S. Senator Elizabeth Warren leading the charge on Behnam. The senators are calling for Behnam’s interactions and communications with Sam Bankman-Fried.

Among the documents requested is a comprehensive record of all meetings, telephone conversations, and emails between Behnam and Bankman-Fried throughout the chairman’s term. As the CFTC prepares to ramp up its enforcement efforts, stakeholders in the crypto industry may face increased scrutiny on all fronts.

While the specifics of the upcoming enforcement actions remain to be seen, industry observers and participants are bracing up for a stricter regulatory environment. Given the volatility of crypto assets, the CFTC’s prediction could impact market sentiments in the coming days as investors look to protect their assets.

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