CFTC Chairman: Legislation Needed to Fill Digital Asset Regulatory Gaps

Rostin Behnam, chairman of the US Commodity Futures Trading Commission (CFTC), will publicly testify at a hearing of the House Agriculture Committee on the topic of "providing clarity for the digital asset spot market" on June 6. The testimony pointed out that legislation is needed to fill the regulatory gap and more Broad digital goods marketplaces should be governed by time-tested regulations that focus on protecting customer assets, monitoring trading activity, prohibiting conflicts of interest, and enforcing strict cybersecurity standards. Among the key provisions regulating the market for digital goods, any new legislation considered by Congress would not break existing laws. Where securities laws apply, the SEC should use its powerful authority to protect customers and address information gaps between issuers of securities and investors in the marketplace. In terms of customer protection, Congress should ensure that the CFTC has full authority to require registered entities to make required disclosures on various matters, such as investment risks, cybersecurity risks, mining, etc.