CFTC Chairman Mike Selig: The cryptocurrency regulatory framework aims to prevent FTX-style fraud

The Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Mike Selig, stated that the proposed regulatory framework for crypto assets by the CFTC will establish a federal-level regulatory system to protect exchange customers from risks such as fraud, market manipulation, and theft of customer funds, preventing a repeat of the FTX collapse.

Mike Selig pointed out that the CFTC is working to introduce a market-based regulatory mechanism for crypto exchanges; he stated that critics opposing relevant measures and supporting the status quo may objectively benefit fraudsters, manipulators, and those misappropriating customer funds, and warned that the lack of appropriate regulation could leave opportunities for the next figure similar to Sam Bankman-Fried.