CFTC To Launch a New Crypto Regulation Arm
The new Office of Technology Innovation will replace the existing FinTech arm LabCTFC.
On Tuesday, July 26, Rostin Behnam, the chief of the Commodities and Futures Trading Commission (CFTC) announced that the regulatory entity will be launching a new “Office of Technology Innovation.” The new arm is set to replace the formerly established LabCFTC and will be positioned to handle crypto regulation.
NEWS: Chairman Behnam Announces Technology and Customer Outreach Reorganization. https://t.co/NPy2dVu6qi
— CFTC (@CFTC) July 26, 2022
With the regulation of cryptocurrency and related digital assets growing more and more necessary, the question of who will be in charge of the affair is also a topic of debate. On one hand, the CFTC seems to be the favorite, as expressed in the recently proposed bipartisan crypto regulation bill by Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY).
On the other hand, the SEC has expressed interest in being the regulatory force for cryptocurrencies, as it identifies the majority of them as securities. Both parties continue to have different guidelines and methodologies for how they handle regulation. The SEC’s stance can be seen in its charges against Coinbase in the recent insider trading scheme case.
SEC Chairman Gary Gensler has said that the only cryptocurrency he would view as a commodity is Bitcoin. In regards to regulation, Gensler has also recently proposed the idea of co-regulation with the CFTC.
“We are past the incubator stage, and digital assets and decentralized technologies have outgrown their sandboxes,” said Behnam at a Brookings Institution event, in regards to the decision to launch the new CFTC arm.
In order to build the new Office of Technology Innovation the CFTC plans to hire specialists in related fields and will also give existing staff the opportunity to rotate through the office in order to gain experience in digital asset regulation. The arm will be headed by a director that is yet to be announced, and will report directly to Behnam’s office.