(Reuters) -U.S. Commodity Futures Buying and selling Fee chair Rostin Behnam will step down when President-elect Donald Trump takes workplace on Jan. 20, the company stated on Tuesday, paving the best way for Trump to nominate his personal chief and kick-start a crypto coverage overhaul.
Whereas the CFTC, which oversees commodity derivatives markets, has historically been a junior participant in monetary coverage, it’s anticipated to play a way more outstanding function as Trump’s administration pushes for extra crypto-friendly guidelines.
Trump is anticipated to initially exchange Behnam with one of many company’s Republican CFTC commissioners – Summer season Mersinger or Caroline Pham – as appearing chair.
Trump’s transition staff has additionally been contemplating exterior candidates, together with former Republican CFTC Commissioner Brian Quintenz in addition to former CFTC officers and business attorneys Josh Sterling and Neal Kumar, in response to two individuals with data of the matter. A everlasting chair would want Senate affirmation.
Spokespeople for Quintenz and Mersinger declined to remark. Kumar and Sterling in addition to representatives for Pham didn’t instantly reply to requests for remark.
Behnam has been a Democratic commissioner on the company since 2017, and was appointed to run the company by President Joe Biden in 2021. Previous to his CFTC stint, he was a senior counsel to Senator Debbie Stabenow, a Democrat who chaired the Senate Agriculture Committee.
“Since 2017, it has been an honor and a privilege to serve the American public and the CFTC, first as a commissioner, then as chairman,” Behnam stated in a press release.
CRYPTO OVERSIGHT
The CFTC beneath Behnam was seen as softer on the cryptocurrency business in comparison with crypto hardliner and Securities and Trade Fee chair Gary Gensler.
However Behnam’s CFTC nonetheless introduced quite a few lawsuits in opposition to cryptocurrency corporations, most notably the now-defunct crypto alternate FTX after it imploded in 2022 together with Binance — the world’s largest crypto alternate — and its founder Changpeng Zhao in 2023.
Trump has picked Paul Atkins, a Washington lawyer recognized for his crypto-friendly stance, as the subsequent SEC chief.
Behnam advised the Monetary Instances, which first reported his plans to step down, that regulation for the crypto business remained inadequate.
“You continue to have a big swath of the digital asset house unregulated within the U.S. regulatory system and it is essential … that we fill this hole,” he stated.
The CFTC remained “properly positioned to be a spot regulator for digital commodity property,” he stated.
Beneath Behnam, the CFTC squared off with occasion contract market Kalshi, rejecting using derivatives to wager on the result of political occasions such because the U.S. presidential election.
However a court docket dominated in Kalshi’s favor, boosting the recognition of election-related betting as People headed to the polls in November.
Behnam advised the FT that he was involved in regards to the legality and social impression of bets on political and different occasions.
“The road goes to be very blurred about what’s authorized, what’s unlawful,” he stated, as know-how and excessive retail demand drive progress in these markets.
