CFTC Chairman Behnam Says Bitcoin Could Double In Price Under CFTC Regulation• October 1, 2022 3:26 pm • Comments
Rostin Behnam, the current chairman of the Commodity Futures Trading Commission (CFTC) stated that regulation under the CFTC would have many benefits for the crypto industry.
One of the potential benefits mentioned was a significant boost to the price of Bitcoin where the value of the asset could double.
Behnam says that the key to growth is having a well regulated space that provides actual regulatory clarity.
This is something that many argue is currently missing within the crypto industry which has reduced investor confidence in the market as it is always unknown whether or not a crypto project will run into regulatory roadblocks.
Regulations Soon https://t.co/w5ptTetA2G
— XRP🔥 🇮🇳 🔥 (@thetracker94) September 29, 2022
“Growth might occur if we have a well-regulated space,” Behnam told attendees during a fireside chat at NYU School of Law. “Bitcoin might double in price if there’s a CFTC-regulated market.”
Behnam has consistently argued for the need to provide market participants with regulatory clarity – something that many in the crypto industry have argued is lacking.
For years, the CFTC and the U.S. Securities and Exchange Commission (SEC) have squabbled over the role of top regulator for the crypto industry, both reluctant to issue much in the way of formal guidance for crypto companies, choosing instead to set regulatory precedent through enforcement actions.
A clear regulatory framework, Behnam argued, could pave the way for institutional investors to enter the market.
“These incumbent institutions in the crypto space see a massive opportunity for institutional inflows that will only occur if there’s a regulatory structure around these markets,” Behnam said.
Behnam continues to explain that crypto institutions greatly increase in value and adoption when there is regulatory certainty.
Right now, it is still uncertain on what roles the SEC and the CFTC will play when it comes to future regulation within the digital asset space.
Although it is likely that both will continue to play a role, the question is which one of them will ultimately end up being the primary regulatory.
A recent bipartisan bill that was introduced by the leaders of the Senate Agriculture Committee proposed that the CFTC would be the primary regulator, but whether or not it will actually pass is still unknown.
— CoinDesk (@CoinDesk) September 29, 2022
Behnam said on Thursday that he supports the bill, which includes a provision that would allow the cash-strapped agency to levy fees on regulated entities – something Behnam argued would be critical if CFTC is to tackle the challenge of regulating crypto.
“We are [currently] appropriated money by Congress, and it has put us in a position where we feel like we’re constantly on edge about how much money we will be appropriated,” Behnam said. “We are still feeling the wounds and scars from about five or six years of flat funding.”
The CFTC’s battle with the dual issues of jurisdiction over crypto markets and its comparatively small operating budget has impacted its ability to effectively deal with crypto crime, Behnam told the audience on Thursday.
“We’re only touching the tip of the iceberg,” Behnam said. “The 60 or so cases [the CFTC has] brought, we’ve had to solely rely on whistleblowers, on customer complaints and on tips coming to us.
— S.Banerjee (@0harekrishna0) September 29, 2022
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