The Cftc Chairman Calls For Regulation Following Bitcoin Etfs.

Following the approval of spot Bitcoin ETFs, CFTC Chairman Rostin Behnam stated that regulating the cash market for digital assets is "more critical than ever."

Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam emphasized the significance of the approval of spot Bitcoin exchange-traded funds (ETFs) for regulation of Bitcoin and other cryptocurrencies.

In his speech on January 26th, Behnam expressed concerns that individual and institutional investors may misunderstand the legal status of spot Bitcoin ETFs following the Securities and Exchange Commission's (SEC) approval of 11 applications on January 10th.

"Nothing is definitively in place to address the opaque and inconsistent practices in cash markets for digital assets," Behnam stated.

Behnam also highlighted that asset management firms obtaining the underlying assets of ETFs from the cash market could impact the transparency of Bitcoin ETFs.

The CFTC leader voiced concerns regarding commercial settlement, conflicts of interest, data reporting, cybersecurity, customer protections, transparency, and overall market integrity.

"ETFs have taken a speculative and volatile asset, wrapped it in a thin layer of indirect regulation, and packaged it as a shiny new product," Behnam remarked.

Cryptocurrency regulations have become a prominent topic of debate within the US government amidst increasing demands from the crypto industry.

In September 2023, Cointelegraph reported that CFTC Commissioner Caroline Pham advocated for a limited pilot program to address cryptocurrency regulations.

Pham warned that the US may need to catch up with crypto-friendly jurisdictions soon. She suggested that the program could resemble regulatory sandboxes implemented at the state level.

However, many in the crypto sector anticipate increased regulatory clarity following the November US presidential elections.

A survey conducted by the Crypto Council on January 2nd revealed that a majority of crypto-focused individuals consider a presidential candidate's stance on digital assets important for voting decisions.

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