CFTC Chairman Rostin Behnam Interview | Clarifies Good Relationship with SEC, CZ to Face Criminal Charges

The Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Rostin Behnam, discussed in an interview with CNBC the existing regulatory loopholes that require congressional intervention to establish new laws, clarify the relationship with the Securities and Exchange Commission (SEC), and expressed the opinion that CZ will face imprisonment and legal consequences.

Loopholes in Crypto Regulation Call for New Laws by Congress

Rostin Behnam pointed out that lawmakers are trying to figure out the different regulatory agencies in the U.S. market and banking sectors. He has emphasized multiple times that such a regulatory framework has loopholes:

Congress will have to step in on crypto regulation to dispel the perception among the public that the U.S. is averse to legitimizing the technology, considering it as unsustainable. Cryptocurrencies have not disappeared, and we see many tokens with large market values, as well as issues like fraud and market manipulation.

CFTC Chairman: We Have a Good Relationship with the SEC

What are the differences in views on cryptocurrencies between Rostin Behnam and SEC Chairman Gary Gensler?

Rostin Behnam did not directly address the question, but he emphasized that, under current law, "many" tokens fall under the category of commodities rather than securities. In light of regulatory loopholes, he once again urged for Congress to intervene and legislate, as cryptocurrencies have yet to establish a comprehensive regulatory environment after many years.

When asked if there is tension in the relationship with the SEC and whether they would have lunch together, he stated:

I want to take this opportunity to dispel any rumors. CFTC and SEC have a good relationship. We share the same values and common interests in protecting the market, the U.S. financial ecosystem, users, etc. We are trying to clarify how existing regulations can adapt to new technologies. Since everyone is busy, if there is time, we will definitely have lunch together. Everything between us is fine.

CFTC Chairman: CZ Will Go to Jail

Rostin Behnam was also asked about the situation with Binance and the settlement. He said:

We have imposed fines exceeding $4 billion in civil and criminal cases, and because it involves criminal matters, Zhao Changpeng will go to jail, but it will take some time.

As CZ has not been sentenced yet and is awaiting a sentencing hearing in February next year, the host asked again, "Do you think he will go to jail?"

Rostin Behnam then stated that the Department of Justice's charges are clear, but he wants to focus on the civil charges. He believes that the CFTC has found a good regulatory solution and is proud of achieving this goal.