According to a report by The Block, Rostin Behnam, the chairman of the US Commodity Futures Trading Commission (CFTC), stated on Monday that enforcement actions would increase as retail investors’ interest and the value of the cryptocurrency market rise. He expects the next “enforcement action cycle” to occur within the next six months to two years.
During a speech at the 27th Annual Milken Institute Global Conference, Behnam said, “When there is an increase in retail investor interest and the value of the cryptocurrency market, enforcement actions also increase.”
Prior to Behnam’s comments, Robinhood, a US online brokerage firm, revealed on Monday that the staff of the US Securities and Exchange Commission (SEC) had made a preliminary decision through a Wells Notice, recommending enforcement actions against its cryptocurrency division for alleged violations of securities laws. Shortly before, Consensys, the developer behind the cryptocurrency wallet MetaMask, and the decentralized cryptocurrency exchange Uniswap also disclosed that they had received Wells Notices from the SEC.
Behnam was also asked about the likelihood of the stablecoin bill passing. He stated, “If we were to put a percentage on it, I still think it’s fairly low.” He mentioned the decreasing number of legislative days in Congress during election seasons and holidays. Behnam added, “Related report: S&P Global: Potential decline in Tether’s dominance if the stablecoin bill passes.”
