CFTC Chair Rostin Behnam Urges Congress to Weigh in on Crypto and Election Betting Legislation

CFTC Chairman Rostin Behnam has urged Congress to act more on crypto regulation and election betting legislation. Behnam believes digital assets should be a top priority regarding spot market regulations.

The CFTC boss believes new crypto legislation will be introduced when the incoming administration assumes office next year.

CFTC Boss Calls for Crypto Regulations

Rostin Behnam, chairman of the US Commodity Futures Trading Commission (CFTC), presented Congress with requests regarding crypto regulation and election betting legislation.

He called on Congress to put more effort into enacting regulations to oversee these sectors. Behnam said this during a fireside chat at the annual meeting of the Securities Industry and Financial Markets Association (SIFMA) on Monday.

In addition, Behnam pointed out the rapid advancement of technology and how it affects the financial markets. He also posed a question about applying blockchain and tokenization in the financial markets, nudging Congress to weigh more on these areas.

There's a lot going on in terms of technology and disruption. Digital assets obviously come top of mind in terms of just regulating spot markets, but what is blockchain and tokenization going to do for financial markets? And those are areas where I personally would love for Congress to weigh in a little bit more than they have," Behnam said.

Further, Behnam said he doesn't expect much action on crypto regulation from Congress this year, given the upcoming holiday and federal budget.

I think as we look into 2025, a new Congress, a new president, that you're likely going to see some legislation," he noted.

Behnam has often reiterated the urgent need for a clear regulatory framework for the digital assets markets.

In a July testimony before the US Senate Committee on Agriculture, Nutrition, and Forestry, Behnam emphasized the need for comprehensive oversight of digital commodities like Ethereum and Bitcoin.

Behnam pointed out the rapid growth and volatility of the crypto asset market, including numerous frauds and scandals. He said these issues underscore the urgency for comprehensive federal legislation to oversee the market, ensure financial stability, and protect investors.

Various bills to regulate the digital assets market and ensure investor safety and financial stability are still under consideration. One of these is FIT21, legislation that aims to give the CFTC more power to regulate cryptocurrency spot markets and digital commodities.

This legislation has passed out of the US House of Reps with a 279 to 136 vote. However, it has not gained significant traction since passing the House.

The House Financial Services Committee Chair, Rep Patrick McHenry, is optimistic that FIT21 could be implemented before the year ends.

Election Betting Contracts Are Unlawful - CFTC Says

The CFTC chair also believes election betting is another important area requiring urgent input from Congress. At the Monday meeting, Behnam said the CFTC sees event contracts on elections as unlawful and that allowing such contracts could force the agency to act as an election cop."

This is a classic area where I think Congress should weigh in," said the CFTC Chair.

Since last year, the commodity regulator has been in a legal battle with Kalshi's predictions marketplace. The agency aims to stop Kalshi from offering election contracts, saying they go against the public interest.

An appeals court judge denied the agency's motion to stop Kalshi from listing its betting contracts. However, the CFTC is adamant about reversing the ruling, stating that the judge was wrong.

The post CFTC Chair Rostin Behnam Urges Congress to Weigh in on Crypto and Election Betting Legislation appeared first on Techreport.