Committee leaders consider the CFTC the ideal regulator for the crypto market, thanks to its knowledge and experience. Although Kwon said he was not at large and wanted to contact government agencies, the police of Singapore noted he was no longer there.
The US Commodity Futures Trading Commission (CFTC) constantly requires full capabilities to regulate the crypto market. Rostin Behnam, the chairman of the CFTC, said it would control cryptocurrencies if the proposed Digital Commodities Consumer Protection Act became law.
Behnam believes that the current macroeconomic conditions could only worsen the impact of market volatility on retail clients. He pointed out that this situation underscores the need for regulatory clarity and market protection.
The CFTC Recognizes that Cryptocurrencies Are Commodity Assets
Considering its knowledge and experience, the CFTC might be the best to regulate the digital asset commodity market. A measure proposed by committee leaders to issue new rules for the cryptocurrency business places the agency at the center of federal oversight.
Behnam praised the proposal of the legislation for additional agency funding, which will allow the CFTC to oversee digital commodity assets. Courts, legislators, and regulators have recognized that cryptocurrencies fall into this category, although other investments have a less clear legal status.
He said digital commodity platforms must maintain adequate financial, operational, and managerial resources. In addition, he thinks they must segregate client funds and meet commission requirements for handling client assets.
Furthermore, Behnam talked about the additional resources provided by the funding mechanism in the DCCPA and the mandates for client education. He explained that they could allow the implementation of this new regime more quickly to ensure efforts reach all investor groups in the community.
Meanwhile, South Korean Prosecutors Believe Do Kwon Is on the Run
According to South Korean prosecutors, Do Kwon is on the run and refuses to participate in the investigation. They charged the founder of Terraform Labs with fraud after the collapse in May.
Kwon recently said on Twitter that he was not at large and wanted to contact government agencies. In addition, he stated that he and his team were fully collaborating as they were not hiding anything. A statement by the authorities of Singapore indicates that the developer was no longer on the island.
The prosecutors responded by saying that Kwon was at large and did not participate in the investigation. They pointed out they were tracking him down to capture him with the collaboration of local and international agencies.
Kwon Promises to Cooperate with the Investigation, but the Authorities Doubt Him
The Korean court ruled the arrest of Do Kwon abroad for the extreme losses caused in the crypto market in mid-2022. However, the police of Singapore explained that they were ready to help but that he was no longer living there.
Kwon stated that his departure was not an act of escape but a way to protect himself from legal dangers. Besides, the CEO of Terraform Labs explained that he was in the mood to work with the authorities.
The South Korean developer has previously confirmed that he would collaborate with the authorities to solve the Terra case. He reiterated that he was the only one responsible for the collapse and would deliver the information required.
By Alexander Salazar