CFTC Chairman's final remarks highlight the lack of governance framework for the extension of encryption-based financial products

Commodity Futures Trading Commission (US Commodity Futures Trading Commission, referred to as CFTC) Chairman Rostin Behnam is about to step down. Before leaving, he expressed in a prepared press release that the expansion of the cryptocurrency industry into traditional financial institutions without comprehensive regulatory safeguards may pose challenges to his successor at CFTC. He plans to continue advocating for CFTC to address the regulatory loopholes of cryptocurrency derivative products after leaving the commission in February.

During Behnam's tenure as chairman, he has twice announced major cases of international financial commodity trading violations simultaneously with the US Attorney General. The first case involved financial manipulation, corruption, and fraud that disrupted the US and global oil and derivative commodity markets. The second case resolved allegations of illegal operation against the world's largest digital asset exchange over the past four years. The complete Keynote from the CFTC can be read at the end of the article.

The successor chairman of the CFTC and the institutional regulatory direction will affect the future development of the encryption industry, especially the many 'derivative financial products' in the encryption industry, which currently have no regulatory framework and are unmanageable. Who will succeed Rostin Behnam after he leaves, and the future policy direction of the 'derivative financial products' for Cryptocurrency, will all affect the development of the encryption industry this year.

The cryptocurrency industry used to like to attack SEC Chairman Gary Gensler, but the CFTC, which can impose sanctions on the cryptocurrency industry and establish an enforcement framework, is also able to do so. The establishment of the CFTC is to oversee derivative financial products. In the past, the traditional banking industry caused the Lehman Brothers incident due to inadequate regulation of derivative financial products, packaging mortgage-backed securities into financial products, and evolving into a global financial crisis.

CFTC needs to establish a regulatory framework for Crypto Assets

Rostin Behnam will step down in two weeks. In his last public speech, he expressed his desire to address the challenges of regulating digital assets and deliver messages to institutions and legislators through Keynotes and public speeches. Behnam said that specific rules need to be developed to address the governance framework of cryptocurrency derivative financial products in the era of cryptocurrency. When traditional banks' derivative financial products turn to emerging cryptocurrency financial products, new crises also arise. He called on the new successor to face this challenge squarely.

Behnam served as the Chairman of the CFTC starting in 2022. He announced on the 7th that he will step down from the position of CFTC Chairman on January 20th (the same day as Trump's inauguration) and leave the Commission in February. This move is seen as being pressured by Trump, but it also raises many issues that investors need to pay attention to. Despite Trump's strong support for the development of the cryptocurrency industry, there must be a regulatory framework to provide more protection for investing in emerging financial products.

SEC Chairman Gary Gensler simultaneously resigned

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), who is most often criticized by the crypto community, has announced his resignation. He told Bloomberg that he has always viewed the cryptocurrency community as "full of bad actors," and added that he has never seen any industry pay more attention to market sentiment than to market fundamentals. He believes that this is a commercial financial sector that has been established in a non-compliant manner, and he is proud of everything the SEC has done, and believes that there are still many tasks to be done.

Trump plans to nominate former U.S. Securities and Exchange Commission member Paul Atkin to replace Gary Gensler. Firing the SEC chairman on the 'first day' in office was one of Trump's promises to the cryptocurrency industry.

What is CFTC doing?

The Commodity Futures Trading Commission (CFTC), also known as the US Commodity Futures Trading Commission, aims to promote the integrity, vitality, and resilience of the US derivatives market through sound regulatory policies. The goal of the CFTC is to become the global standard for comprehensive derivatives regulation.

This article is the last word of the CFTC chairman, highlighting the lack of governance framework for encryption-extended financial products, which first appeared in ChainNews ABMedia.