CFTC Chair Mike Selig has said that the regulator wants to bring stringent regulations to the crypto world. Pro-crypto regulator Mike Selig has said that pushing ahead with new rules will stop another collapse like FTX. Speaking on Fox Business Networkâs Varney & Co.
show Wednesday, the Commodity Futures Trading Commission Chair said that crypto exchanges will have the chance to register with the regulator in order to safeguard digital asset spot markets. Once one of the most popular crypto exchanges, FTX quickly and abruptly went bankrupt in 2022 due to mismanagement. Its founder, Sam Bankman-Fried, is now serving 25 years in prison for fraud and other crimes after $8 billion in customer funds was stolen.
The CFTC and other regulators are pushing ahead with rulemaking for the crypto space, despite lawmakers last month blocking the long-awaited Clarity Act. âFour years ago, we saw the collapse of Sam Bankman-Friedâs FTX, where he stole over $8 billion in customer funds. That canât happen under our regime,â Selig said.
âActually, Sam Bankman-Friedâs subsidiary that was CFTC registered, all the funds were safe and secure because they were segregated, and we have some of the most stringent requirements of any federal agency when it comes to markets â we want to bring that to the crypto world,â he added. Selig added that some exchanges may choose to remain under the state regimes, while others will register federally. The CFTC is relying on powers it already has to regulate crypto markets.
The watchdog this week sought public comment on a framework that would create a new federal registration category, called a âcrypto asset market,â for exchanges offering leveraged, margined or financed crypto trades to retail customers. Exchanges that donât offer leverage could stay under state licenses. But the agency reads âleverageâ broadly, which could bring even fully paid trades under its oversight unless customers take delivery of their crypto.
S. President Donald Trump took power.
