According to the head of the CFTC, Rostin Behnam and members of the US Senate Committee on Agriculture, as the consequences of the collapse of FTX are being studied, there are serious gaps in the current legislation.
The head of the CFTC has lamented the Commission’s rules contained “decades of service to the markets” that were insufficient in the context of the collapse of FTX. In particular, the SEC, unlike the CFTC, has the authority to enforce such basic guarantees as the segregation of client funds and the best execution of trades.
He has said:
“Without new agency powers, there will be flaws in the federal regulatory framework even as other regulators operate within their existing mandates.”
According to him, cooperation between the SEC and the CFTC will continue, but the expansion of the powers of the Commission he heads “would fill in the gaps.”
