US CFTC Chair Rostin Behnam Resigns
Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), will step down on January 20, coinciding with Donald Trump’s inauguration. His resignation signals potential shifts in regulatory priorities as the new administration prepares to overhaul federal oversight.
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The CFTC confirmed Behnam’s resignation on Tuesday, noting that it opens the door for a successor more in line with Donald Trump’s deregulatory agenda.
Trump is expected to appoint one of two Republican CFTC commissioners, Summer Mersinger or Caroline Pham, as interim chair.
A permanent appointment will require Senate confirmation, with the administration also considering external candidates for the role.
Rostin Behnam, Chair of the U.S. Commodity Futures Trading Commission (CFTC). Source: Reuters
Behnam’s Regulatory Legacy
Rostin Behnam joined the CFTC in 2017, serving as acting chair in 2021 before being officially appointed to the role. Before his time at the CFTC, he was a senior advisor to Senator Debbie Stabenow, a Democrat who chairs the Senate Agriculture Committee.
As CFTC chair, Behnam faced significant challenges, including navigating the complexities of regulating the rapidly growing cryptocurrency market.
Though his approach was seen as more moderate compared to SEC Chair Gary Gensler’s hardline stance, the CFTC made waves with its decisive actions against crypto giant Binance.
These actions resulted in one of the largest corporate fines in history and led to the resignation of Binance CEO Changpeng Zhao.
Gaps in Cryptocurrency Regulation
Behnam has consistently stressed the importance of strengthening regulation in the cryptocurrency sector. In an interview with the Financial Times, he noted:
a large swath of the digital asset space [remains] unregulated in the U.S. regulatory system.
He emphasized the need to address these gaps, stating that the CFTC is
well positioned to be a spot regulator for digital commodity assets.
Behnam’s departure comes at a time when regulatory priorities are shifting. Trump appears to favor a more relaxed approach, having nominated Washington attorney Paul Atkins—a known advocate for cryptocurrency—as the new SEC chair. This move could signal a shift toward a more crypto-friendly regulatory environment.
Related: Who are you, Mr. Paul Atkins?
Political Betting and Legal Challenges
One of the key issues during Behnam’s tenure as CFTC Chair was the regulation of event-based derivatives markets.
Under his leadership, the CFTC rejected proposals from the betting platform Kalshi to allow wagers on political outcomes, such as presidential elections. However, a court ruling in Kalshi’s favor has paved the way for the growing popularity of election-related betting.
As he prepared to step down from the CFTC, Behnam voiced concerns about the practice, raising questions about its legality and broader societal implications.
The line is going to be very blurred about what is legal, what’s illegal,
he warned.
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