Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), has announced that he will resign from his position on January 20, coinciding with the inauguration of President Donald Trump. Behnam will permanently leave the commission on February 7, giving Trump the opportunity to appoint a new chairman and pave the way for potentially more crypto-friendly regulation.
The Role of the CFTC under Behnam
Behnam, a Democratic commissioner since 2017 and chairman since 2021, led the CFTC at a time of growing attention to digital asset regulation. He was known for his commitment to making the CFTC the primary regulator of bitcoin and crypto exchanges. Under his leadership, the commission brought significant lawsuits against crypto companies such as FTX and Binance, but remained more moderate than SEC Chairman Gary Gensler.
In a statement, Behnam expressed pride in the CFTC’s progress: “Since 2017, it has been an honor and privilege to serve the American public interest and the CFTC, first as Commissioner and later as Chairman.” However, he stressed that regulation of the crypto industry remains inadequate and that the U.S. needs a clear regulatory structure.
Crypto Regulation in the Trump Era
Behnam’s resignation provides Trump with an opportunity to appoint a chairman with a more crypto-friendly approach. One of the current Republican CFTC commissioners, Summer Mersinger or Caroline Pham, is expected to take the lead on an interim basis. Additionally, outside candidates such as Brian Quintenz, a former CFTC commissioner and crypto advocate, are being touted as possible permanent successors.
The incoming Trump administration has already signaled that it plans to loosen regulations on the crypto industry and encourage innovation. Paul Atkins, a crypto-friendly lawyer, has been chosen by Trump to lead the SEC, indicating a broader shift toward a supportive stance toward digital assets.
Behnam’s legacy and challenges
Despite his support for better regulation of the crypto industry, Behnam has also taken strict measures, blocking platforms like Kalshi Inc. that offered betting on political events. Although a court later ruled in Kalshi’s favor, Behnam warned that such betting carries legal and social risks.
“The line between legal and illegal is becoming increasingly blurred,”
Behnam warned in an interview, referring to the growing event betting markets and consumer demand.
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