Share:
  • Commodity Futures Trading Commission's Chairman Rostin Behnam demanded broader authority over crypto exchanges.
  • Rostin Behnam also suggested revisiting Digital Commodities Consumer Protection Act (DCCPA) bill to ensure no loopholes.
  • Bitcoin price slipped to $16,972, preparing to reclaiming $17,577 as the support floor.

The Chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, testified in the Congressional hearings against FTX on Thursday. Benham made some significant statements regarding regulation and authority, as well as the need to take another look at the Senate bill. 

CFTC asks for more power

CFTC's Rostin Behnam stated to the Senate Agriculture Committee that his agency could not have prevented FTX's downfall. He defended this by saying that since FTX was not regulated by the CFTC, it had no power over the exchange.

Consequently, during the Congressional hearing, Behnam asked for more authority over spot cash market exchanges. If granted, this would make CFTC the first federal agency to regulate this space.

He further stated that regardless, a crisis such as FTX's collapse could have been avoided had the Digital Commodities Consumer Protection Act (DCCPA) been turned into a law. This bill would look to ban the commingling of funds, which was the primary reason behind FTX's breakdown.

Not only this, but Benham also suggested that before the bill is passed, it would be wise to revisit it once again. This would give the agency a second look to ensure that the bill does not have gaps or holes in it. He said,

"Where the bill may be strengthened [is] disclosures around financial information of the entity, the crypto entity and conflicts of interest, obviously an issue that many members have talked about today, given the brazen conflicts that occurred at the non-regulated entity."

Regardless, Benham intended to gain much more authority over other crypto industry players. He demanded the opportunity to oversight spot markets and suggested passing the bill as he stated,

"We need to move forward as soon as possible. We don't want this to happen again in the next few months and have the risk of customers losing money because of these gaps."

Bitcoin price nears recovery

Bitcoin price declined to trade at $16,977 at the time of writing. Over the last 24 hours, BTC has breached through and lost the support of $17,081 and is looking to initiate another rise towards $17,577.

Currently, the cryptocurrency is showing positive signs, with the 30, 50, and 100-day Exponential Moving Averages (EMA) acting as support levels. If BTC reflips $17,081 into support, it could receive some buying pressure from traders. This will allow Bitcoin Price to reinitiate the surprise run-up towards $17,577 and extend it to $18,157.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

On the other hand, a drawdown in price will push BTC to tag the immediate support at $16,607. The next critical support for the cryptocurrency is at $15,852. A daily candlestick close below this level would invalidate the bullish thesis, leading to Bitcoin price tagging the psychological support at $15,000.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Could Aptos price buckle under pressure and crash 55%?

Could Aptos price buckle under pressure and crash 55%?

Aptos (APT) price is pushing on the red descending trend line to trigger a breakout trade with a rally toward $20.36. The move is an outlier as the downtrend since the beginning of February has not finished one day in the green. 

More Cryptocurrencies News

Cardano price looks overpriced, 17% nosedive likely for ADA

Cardano price looks overpriced, 17% nosedive likely for ADA

Cardano (ADA) traders need to face reality as markets are pivoting back toward a sticky inflation story, which contradicts the Goldilocks story that was the driving force in January.

More Cardano News

Luna Classic gears up for recovery after Binance support and latest upgrade

Luna Classic gears up for recovery after Binance support and latest upgrade

Terra Classic (LUNC) formerly known as LUNA is upgrading from its v1.0.4 version to v1.0.5. The world’s largest exchange by volume, Binance has announced support for Luna Classic, fueling a bullish narrative among LUNC holders. 

More Luna Classic News

XRP Price Prediction: Will Powell propel Ripple or dampen the 2023 bull rally?

XRP Price Prediction: Will Powell propel Ripple or dampen the 2023 bull rally?

Ripple (XRP) price sees traders front-running the main event for today with Federal Reserve Chair Jerome Powell taking the stage later this evening at 17:00 GMT in Washington.

More Ripple News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP