Chairman of America's top regulator announced: Trump will resign on the day he takes office

Top US regulators have warned of a “gap” in cryptocurrency regulation and called for increased scrutiny of the political betting market.

Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam (Rostin Behnam) said he will resign on January 20, the day President-elect Trump takes office.

Benham led the CFTC for four years, deepening scrutiny of cryptocurrencies and so-called event contracts, including those that allow betting on elections. Compared to the tough stance taken by US Securities and Exchange Commission (SEC) Chairman Gensler, the CFTC under Benham is less strict about the cryptocurrency industry. However, the CFTC's crackdown on cryptocurrency exchange Binance's violation of anti-money laundering laws eventually led to one of the largest corporate penalties in history and led to the removal of Binance CEO Changpeng Zhao.

However, Benham pointed out that he is concerned that digital assets, including Bitcoin and other cryptocurrencies, are still not sufficiently regulated.

Benham said, “There is still a large area of the digital asset sector unregulated in the US regulatory system. Given the adoption of some traditional financial institutions and the huge demand for these products from retail and institutional investors, it is important to fill this gap.”

He said the CFTC “still has the ability to become a spot regulator for digital commodity assets.” The CFTC chairman, who has close ties to Congress and is supported by Congress, has vowed to use his influence to continue advocating for the agency to assume this role.

The CFTC has traditionally focused on financial derivatives of commodities, such as futures and options, rather than the commodities themselves. However, Benham believes that many digital tokens meet the definition of commodities, and regulating the cash cryptocurrency market would be the agency's “natural choice.”

Trump has yet to nominate Benham's successor, but the president-elect has accepted digital assets and selected cryptocurrency advocate Paul Atkins (Paul Atkins) to lead the SEC.

Benham said he supports “full and strict regulation” of digital assets. But he added, “The important thing is not to take shortcuts, but to make law-based regulations in a very organized and purposeful manner.”

Benham said he was concerned about the legitimacy and social impact of betting on politics and other events that boomed during the election.

The CFTC banned the retail-focused futures market Kalshi from offering contracts that allowed investors to bet on congressional elections in 2023. A US judge lifted the ban after the company sued the CFTC.

“I'm deeply concerned about contracts relating to betting on elections, assassinations, terrorism, and gambling,” Benham said. As technology and high demand drive the growth of these markets, “the lines about what is legal and what is illegal will become very blurred.”

Benham called on his successor to give “new attention” to the issue “so we can have a clearer line on what we think is acceptable and unacceptable.”