CFTC Chairman to Resign on Trump's Inauguration Day

The US Commodity Futures Trading Commission (CFTC) has confirmed that Chairman Rostin Behnam will resign on January 20, 2025, the day Trump takes office.

According to the latest post from the US Commodity Futures Trading Commission (CFTC), the agency's Chairman Rostin Behnam will resign on January 20, 2025, with his last day of work being February 7, 2025.

Notably, January 20, 2025 is also the day when US Securities and Exchange Commission (SEC) Chairman Gary Gensler confirmed the early end of his term, and the moment when Donald Trump officially became the 47th President of the United States.

In his statement, Behnam emphasized that his role at the CFTC has helped the agency make strategic decisions to address challenges in domestic and international financial markets, while ensuring that innovation in the crypto space occurs responsibly. Although he will be leaving his position, Behnam believes that the crypto market will continue to grow and that regulatory oversight is needed to protect consumers and promote transparency.

.@CFTCbehnam Announces Departure from CFTC: https://t.co/cqg9rtW5oV

— CFTC (@CFTC) January 7, 2025

Regulatory efforts and challenges during Behnam's tenure

Mr. Behnam served as Acting Chairman and Commissioner of the CFTC from 2017 to 2021. He also served as a senior advisor to Senator Stabenow, who chairs the Senate Banking Committee.

During his tenure, Behnam has repeatedly urged Congress to provide a clear regulatory framework for overseeing the crypto market, an area the CFTC has devoted significant resources to despite not directly regulating it.

According to Behnam, more than 49% of CFTC enforcement actions in fiscal year 2023-24 were focused on crypto, including major cases involving FTX, Binance, and Celsius. He acknowledged that digital asset-related matters have consumed a large portion of the agency’s resources from other divisions, highlighting the urgency to develop an appropriate regulatory framework to mitigate risk and increase transparency in the sector.

During his tenure, Behnam has been a strong supporter of the Digital Goods Consumer Protection Act (DCCPA), introduced in 2022 by Senators Debbie Stabenow and John Boozman. The bill seeks to define digital assets and place regulation of trading activities in the hands of the CFTC. However, the bill has been controversial, with support from former FTX CEO Sam Bankman-Fried, who has since been investigated for financial fraud.

Mr. Behnam was also involved in a legal dispute between the CFTC and prediction market Kalshi over its offering of voting contracts. After the CFTC was sued and initially ruled against them, a federal appeals court in October 2024 rejected the CFTC's attempt to block Kalshi. This highlights the challenges the agency faces in regulating emerging markets in the digital asset space.

The announcement of CFTC Chairman Rostin Behnam and SEC Chairman Gary Gensler both resigning on January 20, 2025, the day Donald Trump is officially inaugurated as the 47th President of the United States, can be seen as a way for them to avoid being dismissed and create an opportunity for the new administration to appoint leaders with a more ideological orientation in line with Donald Trump's "pro-crypto" policy orientation.