US CFTC chair Behnam to step down as Trump takes workplace

(Reuters) -U.S. Commodity Futures Buying and selling Fee chair Rostin Behnam will step down when President-elect Donald Trump takes workplace on Jan. 20, the company mentioned on Tuesday, paving the best way for Trump to nominate his personal chief and kick-start a crypto coverage overhaul.

Whereas the CFTC, which oversees commodity derivatives markets, has historically been a junior participant in monetary coverage, it’s anticipated to play a way more outstanding function as Trump’s administration pushes for extra crypto-friendly guidelines.

Trump is predicted to initially change Behnam with one of many company’s Republican CFTC commissioners – Summer season Mersinger or Caroline Pham – as appearing chair.

Trump’s transition workforce has additionally been contemplating exterior candidates, together with former Republican CFTC Commissioner Brian Quintenz in addition to former CFTC officers and trade attorneys Josh Sterling and Neal Kumar, based on two individuals with data of the matter. A everlasting chair would want Senate affirmation.

Spokespeople for Quintenz and Mersinger declined to remark. Kumar and Sterling in addition to representatives for Pham didn’t instantly reply to requests for remark.

Behnam has been a Democratic commissioner on the company since 2017, and was appointed to run the company by President Joe Biden in 2021. Previous to his CFTC stint, he was a senior counsel to Senator Debbie Stabenow, a Democrat who chaired the Senate Agriculture Committee.

“Since 2017, it has been an honor and a privilege to serve the American public and the CFTC, first as a commissioner, then as chairman,” Behnam mentioned in a press release.

CRYPTO OVERSIGHT

The CFTC beneath Behnam was seen as softer on the cryptocurrency trade when put next with crypto hardliner and Securities and Trade Fee chair Gary Gensler.

However Behnam’s CFTC nonetheless introduced quite a few lawsuits in opposition to cryptocurrency firms, most notably the now-defunct crypto trade FTX after it imploded in 2022 together with Binance — the world’s largest crypto trade — and its founder Changpeng Zhao in 2023.

Trump has picked Paul Atkins, a Washington lawyer identified for his crypto-friendly stance, as the subsequent SEC chief.

Behnam informed the Monetary Occasions, which first reported his plans to step down, that regulation for the crypto trade remained inadequate.

“You continue to have a big swath of the digital asset house unregulated within the U.S. regulatory system and it is essential … that we fill this hole,” he mentioned.

The CFTC remained “properly positioned to be a spot regulator for digital commodity belongings,” he mentioned.

Underneath Behnam, the CFTC squared off with occasion contract market Kalshi, rejecting using derivatives to wager on the end result of political occasions such because the U.S. presidential election.

However a courtroom dominated in Kalshi’s favor, boosting the recognition of election-related betting as People headed to the polls in November.

Behnam informed the FT that he was involved in regards to the legality and social affect of bets on political and different occasions.

“The road goes to be very blurred about what’s authorized, what’s unlawful,” he mentioned, as know-how and excessive retail demand drive progress in these markets.