CFTC Chairman warns of regulatory ‘gaps’ in crypto and political betting

The U.S. Commodity Futures Trading Commission (CFTC) has warned of a regulatory “gap” in cryptocurrencies and called for increased scrutiny of political betting markets. CFTC Chairman Rostin Behnam said he will step down on January 20, the day Trump is inaugurated. Rostin Behnam said he is concerned that regulation of digital assets, including Bitcoin and other cryptocurrencies, remains insufficient: “There is still a large part of the digital asset space that is unregulated in the U.S. regulatory system, and given that some traditional financial institutions have adopted these products and there is huge demand for these products from retail and institutional investors, we must fill this gap.” Behnam believes that many digital tokens are commodities and that regulating the cryptocurrency market is the agency’s “mission.” He is also concerned about the legality and social impact of betting on politics and other events, as this new market has flourished during the election. He is “very concerned” about contracts related to elections, assassinations, terrorism and gambling. As technology and high demand drive the growth of these markets, “the line between legal and illegal will become very blurred.” (Financial Times)