Sen. Durbin Questions CFTC’s Crypto Regulatory Capacity Post-FIT21

cryptonews.com:

During a Senate Appropriations subcommittee hearing held on June 13, Senator Dick Durbin, D-Ill., questioned CFTC Chair Rostin Behnam and SEC Chair Gary Gensler on the CFTC’s ability to regulate the crypto sector effectively.

The hearing also addressed broader concerns about the adequacy of current regulatory frameworks and the potential impact on the crypto industry’s growth and compliance.

Following the passage of a bill in the US House that would grant the CFTC more power and funding to oversee cryptocurrency markets, Senator Durbin raised concerns about the agency’s ability to handle the increased responsibility.

During the Senate Appropriations subcommittee hearing today , where CFTC Chair Rostin Behnam and SEC Chair Gary Gensler were present to discuss their agencies’ budget requests, Durbin expressed skepticism about the CFTC’s readiness to regulate the rapidly evolving crypto sector.

Durbin questioned Behnam directly, asking,

“What in the world makes you think you can get into this fast-moving, capacious world and be effective as a regulator?”

Behnam acknowledged that while the CFTC has successfully enforced actions against crypto entities, expanding its regulatory scope would necessitate additional resources. Behnam stated,

“We are adequately equipped to oversee the markets we are mandated to oversee, but if we were to be given authority over crypto markets, I would certainly expect there to be an increase in a budget.”

Durbin also sought Gensler’s perspective, given his previous role as CFTC Chair. Gensler highlighted the differences between the CFTC’s current regulatory framework and what would be required to oversee crypto markets effectively.

“I think it depends on what they’re given,” Gensler said.