Is CFTC Underfunded to Regulate Cryptocurrency Industry?

UTC by Steve Muchoki · 3 min read
Is CFTC Underfunded to Regulate Cryptocurrency Industry?
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The CFTC has been working closely with the SEC to help provide crystal clear cryptocurrency regulations.

The cryptocurrency market is getting shaped by global geopolitics. In the United States, the Commodity Futures Trading Commission (CFTC), under Chair Rostin Behnam, has been at the forefront of cryptocurrency industry regulations. However, it has been regarded as a friendlier regulator than the Securities and Exchange Commission (SEC).

During a panel discussion hosted by law firm Lowenstein Sandler in New York on Monday, Behnam said he gets “very irritated when folks start to talk about the CFTC as a more favorable regulator,”

In his opinion, Behnam noted that the CFTC could do much more if it were motivated by funds and working persons.

“If we had more funds, if we had more personnel, we could bring more of this fraud and manipulation to light,” Behnam said.

The CFTC has been working closely with the SEC to help provide crystal clear cryptocurrency regulations. The global cryptocurrency community has welcomed rules as a means to further adoption.

Cryptocurrency Industry

The total cryptocurrency market capitalization stands at approximately $969 billion, down over $2 trillion since hitting ATH late last year. Bitcoin price has dropped over 70 percent to trade around $19k. Ethereum (ETH) price has also declined a similar descent in the past year, despite undertaking a successful migration to PoS from PoW.

While the crypto volatility has stagnated in the past five months or so, market strategists are predicting a significant storm. CFTC Chair Behnam recently noted that Bitcoin price could double with more regulations. Furthermore, crypto hacks and scams have significantly hampered adoption, especially in DeFi ecosystems utilizing multi-chain networks.

From a technical standpoint, Bitcoin price is hanging on a precipice of volatility towards either $30k or $14k. Nevertheless, the long-term bullish sentiment remains high among institutional and retail investors.

The crypto stock market recorded mixed gains on Monday, with almost half posting gains. Argo Blockchain (LONDON: ARB) shares are up approximately 7.46 percent today. Core Scientific Inc. (NASDAQ: CORZ) shares have dropped approximately 14 percent since trading began on Monday. Greenidge Generation Holding Inc. (NASDAQ: GREE) shares closed Monday trading at $0.99, 5.43 per, down from the day’s opening price.

Coinbase Global Inc (NASDAQ: COIN) shares recorded no significant volatility in the past two days, although they are down approximately 79 percent in the past year. Additionally, COIN shares are trading 73 percent down from the year to date.

The cryptocurrency market has enabled millions worldwide who were initially unbacked to access cheap, reliable, and fast international payment services. According to on-chain data, Bitcoin has approximately 50 million holders.

However, most crypto holders are in altcoins like Ethereum and Dogecoin.

Altcoin News, Bitcoin News, Cryptocurrency News, News
Steve Muchoki
Author Steve Muchoki

Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!

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