CFTC Chairman Behnam expresses concerns about spot Bitcoin ETFs and raises need for new legislation

Commodity Futures Trading Commission Chairman Rostin Behnam said he is concerned about risks posed by recently approved spot Bitcoin ETF products and renewed his call for cryptocurrency regulatory legislation at the federal level. Behnam’s comments come two weeks after the U.S. Securities and Exchange Commission approved the first spot Bitcoin exchange-traded funds, which have generated billions of dollars in trading activity to date. In remarks prepared for an American Bar Association event on Friday, Behnam said: “I am concerned that the regulatory approval of Bitcoin ETPs introduces the risk that, despite the presence of the yellow flag, market participants – whether retail or institutional – may mistakenly Confusing the technical approval of a product with the actual regulation of a cash commodity digital asset.” Behnam said there are no federal regulators authorized by Congress to regulate cash markets for digital assets. Behnam has been calling for legislation to help regulate cryptocurrencies. Lawmakers have worked hard over the past few years to draft bills, including one that would essentially give the CFTC new powers over cash markets, though they have yet to get the support they need, with some calling the bill a “big cryptocurrency aspiration.” Checklist". Behnam said: "The concerns I have expressed publicly over the past six years about digital asset commodity spot markets have only grown. The need for federal legislation on digital asset cash markets has never been more urgent, and I will continue to call for action." He said , there are currently no solid measures in place to “address opaque and inconsistent practices in the digital asset cash market,” issues involving conflicts of interest and customer protection. (The Block)