In an appearance before the House Financial Services Committee and the House Agriculture Committee, Psaros Center Distinguished Fellow and former Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam repeated his consistent message to Congress: under current U.S. law, there is a gap in regulation for the non-security digital asset market.
Appearing at a roundtable before Congressional leaders, Behnam offered over seven years of regulatory insight, gained first as a Commissioner and then as CFTC Chairman. During his time at the CFTC, the digital asset market expanded rapidly, bringing with it dramatic volatility. While innovation surged, oversight did not.
He explained that the absence of regulation is hurting retail investors the most. This lack “has only left, for far too long, the vast majority of the digital asset market unregulated and American investors vulnerable to fraud and manipulation,” he said.
Behnam outlined a clear blueprint for how Congress can empower regulators without stifling innovation, featuring key elements such as:
- Dual Registration
- Targeted Oversight
- Fee-for-Service Funding
- Transparency Requirements
- Strong Compliance Framework
- Public Education and Outreach
Beyond domestic concerns, Behnam highlighted the international stakes. Without regulatory clarity, the U.S. is sidelined in global coordination efforts, prohibiting the U.S. from “truly contributing to much needed multilateral coordination efforts.”
Behnam closed with a reminder that the foundation for effective digital asset regulation already exists. “The principles and regulatory foundations that have made U.S. capital markets and derivatives markets the deepest, most liquid, and most resilient in the world provide an effective model for the digital asset commodity market.”