Rostin Behnam, the Chairman of the Commodity Futures Trading Commission, recently urged the U.S. Congress to take decisive action on regulating cryptocurrencies once again.
In his annual address to the House Agriculture Committee on March 6, Behnam stressed the importance of passing legislation that would define the regulatory jurisdiction over the crypto industry. He highlighted the recent surge in the price of Bitcoin (BTC) as a clear indication of the urgent need to address the regulatory gaps in the crypto space. Behnam warned against underestimating the potential for another wave of speculative frenzy.
Behnam also discussed the Financial Innovation and Technology for the 21st Century Act (FIT Act) during his testimony. He explained that if Congress were to approve the FIT bill, the CFTC would be able to establish a comprehensive regulatory framework for cryptocurrencies within a year.
In July 2023, the U.S. House Financial Services Committee made significant progress in cryptocurrency regulation by voting on new legislation. The committee approved two crucial bills – the Financial Innovation and Technology for the 21st Century Act, and a regulatory definition for blockchain technology. These laws aim to set clear guidelines for digital assets, define the roles of the CFTC and SEC, address issues related to stablecoins, establish tax policies for digital assets, and enhance consumer protection.
U.S. Treasury Secretary Janet Yellen also raised concerns about the risks associated with stablecoins, including their potential to destabilize the financial system, capital threats, and token price volatility. Yellen urged Congress to pass new laws to address these issues, particularly focusing on regulating stablecoins and the non-securities crypto market.