(Reuters) – U.S. Commodity Futures Trading Commission Chairman Rostin Behnam will step down on the day Donald Trump is to be sworn in as president, a spokesman for the agency said on Tuesday.
His departure on Jan. 20 would clear the way for Trump to name a successor who might be more aligned with his deregulatory agenda as Washington prepares for a new cadre of federal regulators.
Trump is expected to replace Behnam with one of the CFTC’s Republican commissioners — Summer Mersinger or Caroline Pham — as acting commissioner.
The permanent president would have to be confirmed by the Senate, and Trump’s transition team is also considering outside candidates.
A commissioner at the derivatives regulator since 2017, Behnam became acting in 2021 and later made the role permanent.
Prior to his tenure at the CFTC, he was a senior adviser to Senator Debbie Stabenow, the Democrat who chairs the Senate Agriculture Committee.
CRYPTO SURVEILLANCE
The CFTC under Behnam was seen as less harsh on the cryptocurrency industry compared to the hardline approach adopted by Gary Gensler, as head of the Securities and Exchange Commission.
But the CFTC’s crackdown on crypto exchange Binance for anti-money laundering violations ended with one of the biggest corporate fines in history and the departure of its talismanic boss, Changpeng Zhao.
Trump has chosen Paul Atkins, a Washington lawyer known for his crypto-friendly stance, to be the next head of the SEC.
Behnam told the Financial Times, which first reported his plans to step down, that regulation of the crypto industry remains insufficient. “You still have a large portion of the digital asset space that is unregulated in the US regulatory system and it’s important … that we fill that gap,” he said.
The CFTC remained “well-positioned to be the spot regulator for digital commodity assets,” he said.
Under Behnam, the CFTC cracked down on the Kalshi event contract market, banning the use of derivatives to bet on the outcome of political events such as the US presidential election.
But the court ruled in Kalshi’s favor, boosting the popularity of election-related betting as Americans head to the polls in November.
Behnam told the FT he was concerned about the legality and social impact of betting on political and other events.
“The line is going to be very blurred as to what is legal and what is illegal,” he said, as technology and strong retail demand drive growth in those markets.
In line with its focus on climate-related market risks, the CFTC in September approved the first trading guidelines for voluntary carbon credit derivative contracts in the US, a move expected to boost confidence in the new market.
