U.S. Commodity Futures Trading Commission Chair Rostin Behnam to Step Down

U.S. Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam is stepping down as a new presidential administration approaches. His last day as chair will be January 20, and his term at the CFTC will conclude on February 7.

Behnam has consistently called on Congress to improve federal crypto regulations, as the CFTC has pursued enforcement actions against significant players in the digital asset industry, including the failed exchange FTX.

In a statement, Behnam expressed pride in the Commission’s resilience over the years, ensuring financial market strength amidst various challenges: “We worked to address regulatory gaps and uncertainty. We also responsibly engaged new entrants to support innovation.”

As Behnam departs, other agency leaders, including SEC Chair Gary Gensler and Federal Reserve Vice Chair for Supervision Michael Barr, have announced their exits ahead of the Trump administration. A potential successor for Behnam is former CFTC Commissioner Brian Quintenz.

During his tenure, Behnam highlighted the agency’s resource allocation towards crypto-related enforcement actions, which comprised over 49% of CFTC’s 2023 docket. The CFTC continues to grapple with a rapidly growing market that it does not directly regulate.

Behnam supported the Digital Commodities Consumer Protection Act, which aims to establish a clear legal definition for digital commodities and bring their trading under CFTC oversight. This bill was backed by Senators Debbie Stabenow and John Boozman and had support from former FTX CEO Sam Bankman-Fried.

Additionally, Behnam focused on prediction markets, urging legislative involvement. The agency faced a legal battle with prediction market Kalshi over its attempt to ban election contracts, which led Kalshi to sue the CFTC. A federal court later ruled that the CFTC overstepped its authority in blocking these contracts, a decision the agency sought to appeal but was ultimately overturned by a federal appeals court.

Behnam has had a significant role at the CFTC since 2017, serving as a commissioner and acting chair before his current leadership position. He previously served as senior counsel to Senator Stabenow, contributing to various financial regulatory discussions.