During a Senate Appropriations Committee hearing on June 13, CFTC Chair Rostin Behnam stated that the agency is prepared to take on additional responsibilities in the crypto sector. He dismissed concerns that the CFTC would struggle to manage these new duties, emphasizing that crypto commodities already fall within the agency's purview and that regulatory gaps could be addressed.

Behnam affirmed that the CFTC is adequately equipped to oversee traditional markets but acknowledged that overseeing crypto markets would require increased funding. He indicated a willingness to apply existing KYC/AML laws to these markets, stating, "I don't think we need to deviate significantly from current regulations."

Currently, the CFTC's authority over crypto and non-traditional assets is limited to addressing fraud and manipulation. Behnam highlighted that in the 2023 fiscal year, the CFTC pursued 47 cases related to crypto, a significant portion of its workload. He expressed concerns about the sustainability of allocating agency resources to an unregulated market, warning of potential widespread fraud and manipulation if current trends continue.

SEC Chair Gary Gensler, also testifying at the hearing, suggested that the CFTC's ability to handle additional crypto responsibilities is contingent on the specific tasks assigned. He noted the SEC's robust disclosure framework for the securities market, contrasting it with the crypto sector's compliance challenges.

The Senate hearing primarily focused on the presidential budget request, which includes a proposed $2.6 billion budget for the SEC and $399 million for the CFTC in fiscal year 2025. This budget increase aims to support the agencies in expanding or maintaining their regulatory efforts through enhanced staffing and operational resources.

Separately, legislative efforts like the Financial Innovation and Technology for the 21st Century Act (FIT21) could potentially grant new authorities to the SEC and CFTC, although the bill's passage through the Senate remains uncertain. Another proposed bill, the Lummis-Gillibrand Responsible Financial Innovation Act, also seeks to broaden the CFTC's regulatory scope but has seen limited progress since reintroduction in 2023.