Former CFTC chairman says Congress must legislate crypto spot market rules

Former U.S. Commodity Futures Trading Commission Chairman Rostin Behnam said Congress needs to establish clearer and more durable legal standards for regulating cryptocurrencies and prediction markets, according to Crypto in America. Speaking at Georgetown University’s Financial Markets Quality Conference, Behnam said the rapid growth of prediction markets has increased the need to draw a clearer line between financial products used for risk management and gambling. With Senate discussions on the CLARITY Act, a digital asset market structure bill, failing to make progress, Behnam said regulating the crypto spot market under the CFTC’s existing authority amounts to a stopgap measure. The current approach is little more than a patchwork fix using tape and clips, he said, adding that a clearer long-term regulatory framework is needed.