The Commodities Futures Trading Commission (CFTC) chair, Rostin Behnam, said at a Georgetown University event this morning that the regulatory landscape has not changed and the market is still vulnerable to similar collapses, such as the FTX-level collapse from last year. Behnam noted that the CFTC’s limited power in the spot markets for cryptocurrencies means it can only act against fraud or manipulation once it’s been reported, not preemptively regulate or monitor exchanges. He also talked about the Digital Commodities Consumer Protection Act of 2022 dying on the vine last year, which would have granted the agency power to regulate cash markets. This is bad news for the industry, as it means the CFTC is still in no better position to prevent collapses than it was a year ago. #CFTC #GeorgetownUniversity #FTX #DigitalCommoditiesConsumerProtectionAct
You can read more about this topic here: Decrypt: Regulators Are Powerless to Prevent Another FTX, Says CFTC Chairman
