Chairman of the Commodity Futures Trading Commission Rostin Behnam again asks the U.S. Congress to take active action in crypto regulation.

During his annual testimony before the House Agriculture Committee on March 6, Behnam pointed out the need to pass legislation regarding the jurisdiction of regulators in the crypto industry.

Pointing to Bitcoin’s (BTC) recent rise, Behnam emphasized the need to “fill the gap in crypto regulation.” According to Behnam, expecting “another period of irrational exuberance” is an understatement.

“We need to act; Congress needs to act to fill this gap, specifically around Bitcoin, which is a commodity.”

Rostin Behnam, CFTC Chair

Behnam spoke about the Financial Innovation and Technology for the 21st Century Act (FIT Act). If Congress passes the FIT bill, the Commodity Futures Trading Commission (CFTC) can create a regulatory framework for crypto regulation within 12 months, Behnam noted.

In July 2023, the U.S. House Financial Services Committee voted on new cryptocurrency legislation. Most legislators voted in favor of two essential laws: Financial Innovation and Technology for the 21st Century Act and a regulatory definition of blockchain technology.

The primary purpose of the law is to create a regulatory framework for digital assets, clarify the jurisdiction of the CFTC and SEC, address the issuance of stablecoins, taxation of digital assets, and consumer protection.

U.S. Treasury Secretary Janet Yellen also discussed the potential risks associated with stablecoins’ instability, the threat of capital, and token volatility. Yellen asked Congress to pass legislation to solve these problems, mainly regulating stablecoins and the spot market for crypto assets not classified as securities.