House expected to vote on crypto bill offering SEC, CFTC clarity in May

May 10, 2024 Coin Telegraph

CFTC

The Financial Innovation and Technology for the 21st Century Act passed out of committee in July 2023 but could be headed for a full floor vote in the U.S. House of Representatives.

Lawmakers with the United States House Financial Services Committee announced they are preparing for a full floor vote of the Financial Innovation and Technology for the 21st Century Act, also known as FIT21.

In a May 10 announcement, House Financial Services Committee Chair Patrick McHenry said the full chamber could be clear for a vote on the FIT21 bill “later this month” after consideration in the House Committee on Rules. The bill, passed out of committee in July 2023, seeks to clarify the roles the U.S. Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) would have in regulating digital assets.

“After tirelessly working across the aisle and across the nation over the past year to craft a clear, pragmatic regulatory framework for digital assets, I am proud that this landmark legislation is coming to the House Floor,” said Representative French Hill. “As the collapse of FTX demonstrated, we need strong consumer protections and a functional regulatory framework to ensure the rapidly growing digital asset ecosystem is safe for investors and consumers while securing America as a leader for blockchain innovation.”

CFTC Chair Says ‘Another Cycle of Enforcement Actions’ Coming As Crypto Enters New Phase of Asset Appreciation

May 8, 2024 The Daily Hodl

Crypto firms to see more enforcement actions within 2 years — CFTC chair

May 6, 2024 Coin Telegraph

CFTC

Rostin Behnam said that “without a regulatory framework,” regulators would continue pursuing crypto firms to protect investors from potential fraud and manipulation.

Rostin Behnam, chair of the United States Commodity Futures Trading Commission (CFTC), expects regulators in the country to continue to crack down on cryptocurrency firms as long as the market attracts interest from investors.

Speaking at the 2024 Global Conference on May 6, Behnam said despite “bad events” in 2022, which caused a market downturn and several companies to declare bankruptcy, the crypto market continues to grow and attract investors and entrepreneurs. He did not specifically say whether the CFTC or Securities and Exchange Commission (SEC) would be behind enforcement actions to protect investors, but both regulators have ongoing lawsuits against many crypto firms.

“We’re going to probably see in the next 6 to 18 months, or 6 to 24 months, another cycle of enforcement actions because of this cycle of asset appreciation and interest by retail investors,” said the CFTC chair. “Without a regulatory framework, without that transparency, without those tools that we typically use, as regulators, you’re going to continue to see this fraud and manipulation.”

CFTC Commissioner wants to create AI Fraud Task Force

May 3, 2024 Coin Telegraph

CFTC

Commissioner Kristin Johnson’s remarks came just a day after the CFTC appointed its first chief AI officer.

United States Commodity Futures Trading Commission (CFTC) Commissioner Kristin Johnson recently advanced three proposals for the regulation of artificial intelligence (AI) technologies as they apply to U.S. financial markets.

Speaking at the Technology Advisory Committee (TAC) meeting held on May 2, Johnson laid out the CFTC’s three-pronged agenda consisting of the establishment of a “principles-based framework” to assess the risks associated with integrating AI into financial markets, heightened penalties the intentional misuse of AI, and the creation of a task force to “evaluate, assess, and harmonize guidance, supervision, and regulation that addresses the increasing integration of AI in financial markets.”

While government calls for the creation of investigatory task forces and common-sense risk assessment platforms are nothing new, Johnson’s assertion that crimes committed with the use of AI should be given “heightened penalties” would pose significant changes to the existing legal framework.

CFTC