Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam implied that if a regulatory framework had been in place, the FTX collapse might not have been avoided. However, he highlighted the reasons it would be less likely. He also justified the “many meetings” he had with the FTX team over their application for CFTC rule changes for crypto derivative trading.
At the Financial Times Crypto and Digital Assets Summit, Behnam was asked whether recent events in the cryptocurrency sector have strengthened the need to regulate the crypto cash market, over which the CFTC has no regulatory or supervisory oversight. It only has enforcement authority when someone complains.
“We have to talk about the FTX matter obviously,” said Behnam. “I can’t suggest that if we had a regulatory framework over FTX, specifically the non-US entities, it would have not happened.”
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