Ex-CFTC Chair Warns Of Conflicts Of Interest As Senate Weighs Market Structure
The US Senate Banking Committee’s digital assets subcommittee will hear testimony from former regulators and industry leaders regarding legislation for a digital asset market structure framework. Former CFTC Chair Rostin Behnam emphasized the need for market structure requirements that ensure customer protections, avoid conflicts of interest, and enhance market resiliency. He warned that inaction could increase risks related to market transparency, fraud, and manipulation. The Senate hearing coincides with the House's consideration of the CLARITY Act, which aims to clarify the legal status of digital assets and allocate regulatory authority. Senator Cynthia Lummis highlighted the urgency for the US to establish clear regulations, contrasting it with the EU and Singapore's proactive approaches. The Senate's bipartisan efforts follow recent votes on crypto-related bills, including the GENIUS Act, which regulates payment stablecoins. Senator Elizabeth Warren, critical of Trump's connections to the crypto industry, may address these issues during the hearing.
