CFTC Chairman Urges Congress to Take Action on Cryptocurrency Regulation and Election Gambling

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CFTC Chairman Calls on Congress to Take Action
Election Betting
Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), recently urged Congress to take action on cryptocurrency regulation and election betting. According to The Block, Rostin Behnam stated during the Securities Industry and Financial Markets Association (SIFMA) annual conference on Monday:
“There’s been a lot happening in terms of technology and disruption. Digital assets are clearly a prime consideration when it comes to regulating the spot market, but what impact will blockchain and tokenization have on the financial markets? These are areas that I personally hope Congress pays more attention to.”
Rostin Behnam has previously advocated for cryptocurrency legislation and stated that he does not expect Congress to accomplish anything this year due to the holidays and the need to pass a federal budget.
“I think, as we look ahead to 2025, a new Congress and a new president, we may see some relevant legislation.”
There are currently several bills under discussion by lawmakers, including FIT21, which would give the CFTC more power and funding to regulate the cryptocurrency spot market and “digital commodities,” particularly Bitcoin. FIT21 passed the U.S. House of Representatives in May, but has since made little progress. Patrick McHenry, the Republican representative from North Carolina and chairman of the House Financial Services Committee who will retire in January, remains optimistic about the bill’s passage before the end of the year.
The CFTC has also been monitoring the dynamics of prediction markets, which allow users to bet on the outcomes of future events, from the total amount of snowfall in New York City this month to the severity of an economic recession that may occur this year.
The CFTC has consistently maintained that gambling contracts related to election events are illegal, putting the organization in an awkward position. Rostin Behnam stated on Monday:
“This is a classic area where I think Congress should get involved.”
Over the past year, the CFTC has been involved in a legal battle with prediction market platform Kalshi, stating that Kalshi cannot offer election contracts and adding that it is “not in the public interest.” Kalshi subsequently filed a lawsuit in November 2023. Last month, Judge Jia M. Cobb of the U.S. District Court for the District of Columbia ruled that the CFTC exceeded its statutory authority in attempting to block Kalshi from offering election contracts. The organization quickly appealed the decision but was ultimately rejected by the federal appeals court on October 2nd.
However, the CFTC took further action last week, arguing in an appellate brief that the judge’s ruling was incorrect and requesting its overturning.