CFTC Chief advocating for Bitcoin regulation steps down

Rostin Behnam, the head of the U.S. Commodity Futures Trading Commission (CFTC), is set to step down before the end of January according to an X post. His resignation marks the end of his tenure, during which he tirelessly pushed for the CFTC to have broader authority over cryptocurrency markets, though his efforts largely went unfulfilled.

Behnam’s resignation date coincides with Trump’s inauguration, allowing the administration to appoint its Chief to drive its crypto policy agenda.

Today, I announced my departure from @CFTC. After more than seven years at the U.S. Commodity Futures Trading Commission, I will be stepping down from my position as Chairman on January 20th. My final day at the Commission will be Friday, February 7th. A 🧵

— Rostin Behnam (@CFTCbehnam) January 7, 2025

The CFTC has been in charge of commodity derivatives markets but has had little say regarding financial policy. The situation is about to change, and the agency is expected to be a critical player in President Trump’s administration, eager to advocate for more crypto-friendly policies.

Behnam strongly pushed for CFTC to become the primary US crypto regulator

While at the helm of CFTC, Behnan pushed for his commission to become the main Bitcoin regulator and have powers to oversee cryptocurrency exchanges. The entity also examined and sometimes tried to obstruct firms that allowed Americans to bet on US election outcomes.

Behnan’s advocacy to give the commission legislative authority over crypto failed during his tenure. However, things look promising with the Republicans taking control of Congress and the White House. The CFTC could become more vibrant, expanding its jurisdiction to include major tokens like Bitcoin and Ether.

The CFTC chair joined the commission in 2017 as a member, and by 2021, he assumed the chairmanship position in an acting capacity. A year later, he was sworn in to become the official chairperson of the agency. Previously, he worked as an aide to former Senate Agriculture Committee Chair Debbie Stabenow.

Several candidates have been suggested to replace Chairperson Behnam

As Behnam prepares to leave, attention has turned to who will replace him. Many expect President Trump to elevate one of the two Republican commissioners, Summer Mersinger or Caroline Pham, to the role of chair. However, the president transition team has also fronted external candidates, including former Republican Commissioner Brian Quintenz, Josh Sterling, a former official, and Neal Kumar, an industry attorney. According to sources, the permanent chair must be approved by the Senate.

The CFTC, as a crypto “regulator” under Behnam, appeared soft to the crypto industry and operated differently from the Securities and Exchange Commission, led by Gary Gensler. The SEC chair is a hardliner who made regulation decisions that were not comfortable for the industry.

Despite its soft approach, the commission brought several lawsuits against crypto firms, including one that targeted the now-defunct crypto exchange FTX after it imploded in 2022. In 2023, it also charged Binance and its founder, Changpeng Zhao.

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