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On November 5, the United States is set to witness a crucial presidential election, in which Republican candidate Donald Trump will compete against Democratic candidate Kamala Harris to win the most powerful chair in the White House. The entire crypto community is closely watching the US political landscape. They are very eager to know how it will transform after the election.
As the country discusses what will happen to the crypto industry post-election, Rostin Behnam, the US Commodity Futures Trading Commission chairman, while speaking at the Securities Industry and Financial Markets Association annual meeting held in New York last day, emphasized how the lack of crypto regulations has impacted the cryptocurrency industry, highlighting why it is important for the next president to consider creating a proper crypto regulation framework.Â
CFTC Struggles Without Crypto Legislation
Behnam stated that, due to the lack of a strong cryptocurrency legislation framework, the agency is currently unable to effectively monitor the crypto industry properly. He warned that the improperly regulated state of the crypto industry could expose crypto investors to greater risks.
He expressed his confidence in the ability of the next US administration to make necessary progress in creating a robust crypto legislation framework. Meanwhile, he admitted that the efforts taken by the present regime to create a crypto framework have stalled.
CFTC Turns to AI for Market Surveillance
Responding to SIFMA President Kenneth Bentsen’s concern about constant enforcement actions, the CFTC chair outlined their plan to increase the use of AI to monitor markets. He asserted that this plan would reduce the need for frequent enforcement actions.Â
Various US departments, connected to the financial sector, have already made significant strides in incorporating AI technologies to improve their efficiency. The US Treasury Department recently used certain AI tools to recover $4 billion lost in fraud and improper payments.
In conclusion, what we should take away from the CFTC chairman’s statement is that it is counterproductive to cripple the progress to the crypto sector’s growth with stricter regulations. Instead, AI possibilities should be explored to better monitor the financial landscape.
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