CFTC creates office to oversee cryptocurrencies

A vote on a bill that will appoint the Commission as the regulator of the digital assets sphere could take place as early as 2022

26.07.2022 - 12:40

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What’s new? The Commodity Futures Trading Commission (CFTC) has created a new Office of Technology Innovation (OTI). It will replace the existing fintech team, LabCFTC. Commission employees will be able to undertake an internship at OTI to gain experience in the field of cryptocurrencies, CFTC Chairman Rostin Behnam said. A vote on a bill introduced by Senators Cynthia Lummis and Kirsten Gillibrand that would appoint the CFTC as the crypto market regulator could take place as early as 2022.

Speech by the CFTC Chairman

The CFTC’s comments. Behnam said that he was “encouraged” by legislative efforts to create a more consistent approach to regulating digital assets. According to him, even the strongest cooperation may not give the efficiency needed “to put hard and fast stops to misconduct” that increasingly has an impact not only on individual investors. He added:

“The lack of a comprehensive regulatory regime, applicable to businesses operating in the digital asset market has led to inconsistent practices around issues such as trade settlement, conflicts of interest, data reporting, and cybersecurity.”

In June, Securities and Exchange Commission (SEC) Chair Gary Gensler invited other financial agencies to join forces to develop comprehensive crypto regulation rules, saying he was working on a “memorandum of understanding” with the CFTC. The SEC plans to share information on registered tokens and other digital assets with “allied” regulators.

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