SKrypto-Blog

Powered By:

Seward-and-Kissel
Subscribe

CURRENT-CY NEWS & LEGAL TOKENS

Featured image

 

Changes Are Coming...they really are.

On January 7, 2025, CFTC Chairman Rostin Behnam announced that he will be stepping down as Chairman on January 20th and leaving the Commission entirely on February 7th. Just before this announcement, Behnam told the Financial Times, “You still have a large swath of the digital asset space unregulated in the U.S. regulatory system and it's important ... that we fill this gap.” He likely realized that his commitment to further regulation did not align well with the “to the moon” rhetoric echoed by the Trump administration. Because of this, Behnam decided to join fellow regulator Gary Gensler in private life.

After being sworn in as the CFTC’s 15th Chairman in January of 2022, Behnam expanded the CFTC’s role in the regulation of the digital asset industry. In 2023, 47 of the 96 enforcement actions brought by the CFTC involved digital assets. This was the largest number of digital asset enforcement cases ever brought by the CFTC.

Speaking of record years, the CFTC followed-up its 2023 performance with another stellar outing in 2024, recovering a record setting $17.1 billion in relief from enforcement actions. This resume included its largest ever recovery in a single case, which just so happened to also be a digital asset case!1 It also settled its action against Gemini, but that slipped technically into 2025.

Behnam’s Commission was driven by a clear intention to become the preeminent digital asset regulator in the US. His time as Commissioner positioned the CFTC alongside the SEC as the top crypto regulator, a feat which did not seem possible before. Even if the CFTC continues to overtake the SEC in the digital asset industry, it will likely be done with far less enforcement.

Legal Tokens. There is no doubt that Mr. Trump will be intent to replace Behnam with someone with a deregulatory agenda, but we must still wait and see whether the 2025 CFTC will enjoy another… record year.

_________________________________________________

1 FTX was ordered to pay $8.7 billion in restitution and $4 billion in disgorgement.

The opinions expressed are those of the author(s) and do not necessarily reflect the views of the firm or its clients, or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.

SUBSCRIBE TO SKRYPTO

Fill out the following form to receive our cryptocurrency news and analysis.

Subscribe via Email

Author's Assets

Anthony Tu-Sekine_Headshot

Anthony Tu-Sekine | Partner

As the head of Seward & Kissel’s Blockchain and Cryptocurrency Group and a frequent commentator on all things crypto, Anthony advises clients on a wide range of evolving topics, including how to structure and issue security and utility tokens, registered and unregistered offerings of security tokens, token custody, transfer and liquidity issues, non-security opinions, and investments in crypto assets by funds and other investors. A recognized leader on physical precious metals funds, Anthony represented APMEX Inc. and alternative asset manager Sprott Inc. in connection with the launch of OneGold.com, which allows investors to own gold documented on blockchain. He also:

  • Represents ShelterZoom, a leading blockchain-based SaaS contract management platform;

  • Helped form a tokenized hedge fund;

  • Provides advice in connection with ransomware payments made in cryptocurrencies; and

  • Worked with sponsors of bitcoin ETF and OTC products.

“You can work with regulators or you can really try to piss them off… If you really want to do the latter, then you should expect that they will bring every tool they have against you.”
 
- Anthony’s thoughts on BitMEX indictment, as published in Law360 article “BitMEX Case Seen as Blessing in Disguise for Crypto Sector”
CONTACT via Email
Bresler_Headshot2x

Daniel Bresler | Partner

Daniel Bresler is a partner in the Investment Management Group.

Dan primarily represents U.S. and non-U.S. investment managers, commodity pool operators, commodity trading advisors and private funds, including hedge funds, private equity funds and commodity pools. He advises clients on a variety of securities, commodities and corporate law matters, including fund structuring and formation, derivatives regulation and Securities Exchange Act filings. In addition, Dan assists clients in developing and implementing SEC, CFTC and NFA compliance policies and procedures and guides clients through regulatory examinations. He also represents clients in joint ventures, spinouts and other business transactions.

CONTACT via Email