KEY POINTS
- Behnam said that during his leadership, he took actions toward ‘building consensus’
- Unlike Gensler, Behnam was viewed as a more open-minded regulatory leader
- The CFTC levied multi-billion-dollar fines on Binance and had run-ins with crypto leaders over a proposed ban on crypto betting
Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has announced he will step down from his position on Jan. 20, during President-elect Donald Trump’s inauguration.
Behnam follows in the footsteps of U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, who previously said he will resign on the same date.
Behnam Hails ‘Stronger Than Ever’ Derivatives Markets
In his announcement, Behnam said he led the Commission in the past years toward building “stronger than ever” derivatives markets.
“As a Chairman, I led the agency with a focus on identifying, assessing, and addressing risks within our regulated markets. Additionally, I took actions anchored in building consensus – strictly within the bounds of the law, and towards establishing appropriate guardrails to minimize disruption, maintain a level playing field for all stakeholders, and fulfill our mission and purpose,” he said.
He also heaped praise on CFTC staff for demonstrating an organizational drive and effectiveness in operations. He thanked his fellow commissioners and outgoing President Joe Biden for their support throughout his CFTC chairmanship.
Behnam’s resignation announcement is much shorter than that of outgoing SEC chief Gensler, who provided a long list of what he said the Commission accomplished under his leadership.
How Crypto Fared Under Behnam
The CFTC is a separate regulatory arm from the SEC, and while it has been less aggressive in its crypto and blockchain crackdown, it is known for one of the biggest fines in financial history when it levied $2.7 billion in fines and penalties on crypto exchange giant Binance.
Separately, Binance founder Changpeng Zhao was also penalized $150 million.
Last year, the CFTC proposed a rule that could ban cryptocurrency betting on political events through event contracts – a service offered by popular market prediction platform Polymarket.
Crypto leaders united in calls to ask the Commission to withdraw the proposal, with some arguing that decentralized prediction markets have “real public utility” and a significant step in innovation.
Despite the legal row with Binance and the proposed ban on politics betting with crypto assets, the CFTC under Behnam was considered by some experts and enthusiasts as more open-minded than the SEC under Gensler.
The agency has also engaged in a “turf war” with the SEC regarding which regulator should oversee digital assets.
In the Face of Trump 2.0
Gensler and Behnam’s resignation on Jan. 20 is telling in many ways. Both regulatory chiefs did not specifically say they weren’t keen to serve under Trump, but the incoming president has called out the alleged “overreach” in digital asset regulation.
Donald Trump says he will:
– support crypto businesses
– support the right to self custody
– keep Elizabeth Warren away from bitcoin
– ban central bank digital currencies pic.twitter.com/Cz1zwuonWi— Crypto Tea (@CryptoTea_) May 26, 2024
During his campaign, Trump promised he would make sure Bitcoiners are kept away from Democratic Sen. Elizabeth Warren “and her goons,” seemingly referring to allegations in the crypto space regarding Warren supposedly encouraging financial regulators to hinder the industry’s growth.
Trump has yet to nominate a potential candidate for the next CFTC chair.
