US CFTC chair to step down, flags urgent need for crypto regulation
Rostin Behnam, chair of the US Commodity Futures Trading Commission (CFTC), will step down on Jan. 20 after a four-year tenure marked by significant enforcement actions in the crypto sector and calls for stronger regulation.Behnam oversaw high-profile cases, including a $4.3 billion settlement with Binance, but has expressed concerns about the lack of regulatory oversight in the digital asset space, the Financial Times reported on Jan. 7.Benham told the FT that he was concerned about digital asset regulation, describing it as “insufficient” due to “a large swath of the digital asset space” being unregulated in the US.As he prepares to leave office, Benham emphasized the need for robust oversight to address growing adoption demands and ensure market integrity.Behnam calls for increased crypto oversightDuring his tenure, he led the CFTC to finalize federal guidelines for carbon offset trading and expand oversight into digital assets.The agency also pursued Binance for operating illegally in the US as an unlicensed crypto derivatives trading platform and failing to comply with regulations.Behnam reportedly highlighted the regulatory “gap” in crypto markets, arguing that many digital tokens qualify as commodities and should fall under the CFTC’s jurisdiction.Behnam stressed the importance of intentional regulation, calling for a “very disciplined” approach to how rules are written that is driven by the law.He called for his replacement to deliver “renewed focus” to the crypto market so that clearer lines are in place to determine what is “permissible and impermissible.”A16z’s exec top pick for Behnam replacementOn Dec. 12, Brian Quintenz, a former CFTC commissioner and current head of policy at Andreessen Horowitz’s crypto division, a16z, reportedly emerged as the top pick to replace Behnam.Quintenz’s background features overseeing key policy initiatives at the CFTC between 2017 and 2021, and his appointment as chair could change the long-debated jurisdictional lack of clarity over cryptocurrencies.The former CFTC commissioner previously advocated for financial innovation in the digital asset industry and continues to push this narrative as head of policy at a16z.Â