Rostin Behnam said that “without a regulatory framework,” regulators would continue pursuing crypto firms to protect investors from potential fraud and manipulation.
Rostin Behnam, chair of the United States Commodity Futures Trading Commission (CFTC), expects regulators in the country to continue to crack down on cryptocurrency firms as long as the market attracts interest from investors.
Speaking at the 2024 Global Conference on May 6, Behnam said despite “bad events” in 2022, which caused a market downturn and several companies to declare bankruptcy, the crypto market continues to grow and attract investors and entrepreneurs. He did not specifically say whether the CFTC or Securities and Exchange Commission (SEC) would be behind enforcement actions to protect investors, but both regulators have ongoing lawsuits against many crypto firms.
“We’re going to probably see in the next 6 to 18 months, or 6 to 24 months, another cycle of enforcement actions because of this cycle of asset appreciation and interest by retail investors,” said the CFTC chair. “Without a regulatory framework, without that transparency, without those tools that we typically use, as regulators, you’re going to continue to see this fraud and manipulation.”