According to PANews, the U.S. Senate Banking Committee's digital assets group convened a hearing on Tuesday to discuss a legislative framework for the cryptocurrency market structure. Former Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam, in his prepared testimony, warned that the current regulatory trajectory is unsustainable without addressing gaps in cryptocurrency oversight. He urged lawmakers to focus on market structure requirements such as customer protection, conflict of interest avoidance, and market resilience.
Behnam's testimony highlighted that public interest in digital assets is unlikely to wane, and without action, financial markets and investors face increased risks due to a lack of transparency, fraud, manipulation, corruption, and conflicts of interest. As the digital asset market becomes more intertwined with traditional financial institutions, concerns about market resilience and financial stability are also intensifying.
Earlier today, it was reported that many senators were absent from this bipartisan hearing on cryptocurrency market structure.