The agency chief said Monday that the regulator that may soon be responsible for more oversight of cryptocurrency in the United States is strengthening its technology team.
The Commodity and Futures Trading Commission (CFTC), which will gain greater authority over digital assets under the proposals Bipartisan Congressional Billyou are creating a new office for technological innovation.
CFTC Chairman Rustin Behnam said about the decision, while speaking at Brookings Institution event yesterday.
The new office will replace the CFTC’s existing fintech team called LabCFTC, a project that was the brainchild of Behnam Christopher Giancarlo’s predecessor. The former CFTC chair is also a blockchain advocate who has adopted the nickname “Crypto Dad.”
Once the rebranding to the Office of Technology Innovation and Reorganization is completed, the unit will be headed by a manager responsible to the Behnam office.
In addition to hiring industry professionals, the office will give CFTC employees the opportunity to rotate and gain experience in the crypto field.
CFTC Joins Race to Regulate Cryptocurrency
Behnam was speaking at a time when his agency appears ready to take more responsibility for cryptocurrency, marking a change from the status quo in which the Securities and Exchange Commission (SEC) has led the charge.
a The House bill called the Responsible Financial Innovation Actco-sponsored by Senators Kirsten Gillibrand (D-NY) and Cynthia Loomis (R-Wisconsin), the CFTC will see major oversight of “fungible digital assets that are not securities.”
The bill is expected to be presented to the Congressional Agriculture Committee, which oversees commodity markets because of its historic role in grain futures markets. It may also go to the vote as soon as this year, according to Gillibrand.
Behnam said yesterday that he “encouraged” legislative efforts to create a more consistent regulatory approach.
“Even the strongest cooperative relationships may not lead to the efficiency we need to crack down and quickly stop misbehavior that has increasing effects beyond individual investors,” he said.
“The lack of a comprehensive regulatory regime applicable to companies operating in the digital asset market has led to inconsistent practices on issues such as trade settlement, conflicts of interest, data reporting, and cybersecurity.”
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