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CFTC commissioner calls for enhanced authority over crypto as Senator Warren backs SEC and Gensler

  • CFTC Commissioner, Kristin Johnson, is looking to introduce and establish new cryptocurrency rules.
  • Johnson also suggested the agency should have the authority to engage in due diligence to fulfill customer protection and market integrity.
  • Senator Elizabeth Warren stated that the solution to crypto regulation lies with the SEC, which has a long history in this field.

The fight for implementing crypto regulation and finding the right overseeing authority for the same has not yet come to an end. While both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) both claim the right, neither of the two has managed to convince the majority.

CFTC asks for crypto regulation 

CFTC Commissioner, Kristin Johnson, during a speech at Duke University on January 21, called for an increase in oversight of the crypto market. Johnson stated that she is encouraging the CFTC Chair, Rostin Behnam, to initiate a notice and comment process urgently.

This is because Johnson is attempting to introduce and establish new cryptocurrency rules under the purview of the CFTC.

Johnson also called the Congress to enhance the agency’s authority when it comes to regulating cryptocurrencies. The CFTC Commissioner’s statements came after the collapse of the cryptocurrency exchange FTX, which Johnson highlighted multiple times during her speech.

She also asked that the agency has higher participation and visibility when it comes to the financial health of companies looking to acquire or merge with another company. Johnson stated,

“In order to fulfill our customer protection, market integrity, and market stability mandate, the commission should have the authority to engage in an appropriate level of due diligence.”

Senator Elizabeth Warren prefers the SEC

Senator Elizabeth Warren, while keynoting a crypto event on Wednesday, called for tighter regulation over the market while also pushing the SEC’s authority. Senator Warren stated that the solution to crypto regulation lies with the SEC while also recognizing Chair Gary Gensler’s role in it, adding,

“The SEC has a long history of fighting exactly the battles that we now face… Gary Gensler is demonstrating that he is the right leader to get the job done.”

Other panelists shared this sentiment, which was also addressed in their speeches. The director of research at the American Economic Liberties Project, Matt Stoller, stated,

“There is a smear campaign against Gensler right now from the industry trying to blame Gensler for what the industry did.”

However, the crypto industry might not agree with this as in the past, Gensler’s harshness has led to the community demanding his rejection, alas to no avail.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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