U.S. CFTC Chair Rostin Behnam's Legislative Wishlist

U.S. Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has outlined a legislative wishlist for Congress, emphasizing the need for action on crypto regulation and election betting.

Behnam highlighted the rapid technological developments, stating, "Digital assets obviously come top of mind in terms of just regulating spot markets, but what is blockchain and tokenization going to do for financial markets?" He expressed a desire for Congress to be more involved in these areas during a speech at the Securities Industry and Financial Markets Association's annual meeting.

Expectations for Congress

Despite his advocacy for crypto legislation, Behnam does not expect any significant actions from Congress this year due to the upcoming holidays and federal budget requirements. Looking ahead to 2025, he is optimistic that a new Congress and president could lead to legislative changes.

Current Legislation

Among the pending bills is FIT21, which aims to grant the CFTC additional power and funding to regulate crypto spot markets and "digital commodities," particularly bitcoin. Although FIT21 passed the House of Representatives in May, it has not made substantial progress since then. House Financial Services Committee Chair Patrick McHenry has expressed hope for its passage before the year ends.

Election Betting

The CFTC is also addressing predictions markets, enabling users to wager on future events. Behnam noted the agency's stance that betting on election outcomes is unlawful, complicating its role as an "election cop."

Despite this, the CFTC has been involved in a legal dispute with predictions market Kalshi, which challenged the agency’s prohibition on election contracts. A recent ruling by Judge Jia M. Cobb stated that the CFTC overstepped its authority in blocking Kalshi. The CFTC has since appealed the ruling, which was upheld by a federal appeals court, allowing Kalshi to offer bets on the U.S. presidential election.