Crypto Hawk Rostin Behnam Steps Down As CFTC Chair Amid Failing Kalshi Lawsuit

Commodities Futures Trading Commission (CFTC) Chairman Rostin Behnam will step down on January 20, 2025, amid an unresolved lawsuit against retail betting market Kalshi, the agency announced today.

Behnam’s departure comes as the commission battles Kalshi over the regulator’s ban on political betting contracts, highlighting regulatory challenges in emerging financial markets.

During his tenure, Behnam established himself as a staunch advocate for cryptocurrency oversight. His most notable achievement was securing a $4.3 billion settlement with crypto exchange Binance over regulatory violations.

Behnam pushed for expanded CFTC authority over digital assets, arguing for clearer regulatory frameworks in congressional testimonies. Under his leadership, the agency intensified enforcement actions against crypto firms operating outside regulatory boundaries.

The White House has not yet nominated a successor. Behnam’s exit raises questions about the future direction of digital asset regulation and the commission’s stance on novel financial products.

Last January, Behnam said he was worried the then-recent approval of spot market Bitcoin (BTC) exchange-traded funds (ETFs) would “magnify” the issues surrounding digital asset markets.

According to Behnam, the goal of his enforcement actions was always to protect investors.

“Without a regulatory framework, without that transparency, without those tools that we typically use as regulators, you are going to continue to see this fraud and manipulation.

And putting aside the legitimacy and where this technology may go and what role it might play in our economy and commerce, the internet, digital assets generally… we just have to think about things from a regulatory and consumer protection standpoint. And I think that needs to be our guiding light in terms of driving this conversation, filling these regulatory gaps and creating this framework that’s ultimately going to protect American investors.”

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