One-third of all CFTC crypto enforcement actions took place this year: Chairman Behnam

US Commodity Futures Trading Commission Chairman Rustin Behnam highlighted the agency's activities in the crypto sphere and the importance of current legislation at the Financial Industry Association's Expo 2023 event in Chicago. He described the CFTC's enforcement division's efforts as “a relentless drumbeat.”

In a written version of a keynote address to the industry group, Behnam reported $6 billion in fines collected by the agency in fiscal year 2023.

45 of these [enforcement] Actions taken during the fiscal year included offenses related to digital property, representing more than 34% of the 131 actions brought by the Commission since 2015.

Behnam singled out the “precedent litigation” the agency won against Oki DAO, which resulted in the shutdown of the decentralized autonomous organization (DAO) and a $643,542 fine. In its default judgment against Ooki Dao, the US District Court for the Northern District of California found that the DAO was a “person” under the Commodity Markets Act of 1936 (CEA).

Behnam returned to the CEA as he discussed the agency's future direction. “Our latest cornerstone is a misunderstanding of the underlying technology: DeFi, AI and standard Wi-Fi,” he says.

“The limitations in the CEA, which were essentially established in another era, create a real barrier to engaging in laws and policies that are important to our mission but beyond our control.”

In addition, those restrictions “Fork[e] The agency is increasingly involved in resource completion requests to ensure that we are working within our scope.

Looking forward to speaking on @CFTC agenda & enforcement at @FIAconnect #FIAExpo on Monday morning. My comments will be posted online at https://t.co/JojHNdQoVh.

— Rostin Behnam (@CFTCbehnam) October 2,

Vertical integration — “the growth of electronicization and the prospect of defiance” — is happening across financial markets and leading to regulatory concerns, and “customer protection means something different now,” Behnam said.

Related: CFTC Commissioner Calls for Crypto Regulatory Pilot Program

Behnam's comments contrasted sharply with Securities and Exchange Commission Chairman Gary Gensler's position that Depression-era financial legislation “has been very beneficial to investors and economic growth over the past 90 years” and should not be touched.

Behnam also implied limitations on the CFTC's enforcement authority. ” To point that out […] We have to wait for the victims to suffer and cry for help to be vigilant […] It undermines our mission and purpose,” he said. “I continue to advocate for more power in the crypto space,” he added later.

Magazine: Crypto Sanitation: How Much Enforcement Is Too Much?