Integration is a ‘step in the right direction’ to solve crypto’s energy use – Rostin Behnam

US Commodity Futures Trading Commission, or CFTC, chairman Rostin Behnam said that Ethereum’s blockchain transition to proof-of-stake would help reduce crypto’s power consumption, but hinted that legislation may still be needed to address the issue.

Speaking at a hearing Thursday before the Senate Agriculture Committee, Behnam addressed a question from Minnesota Sen. Amy Klobuchar, who brought up the “significant energy” required from mining cryptocurrencies. Without naming the merger, the CFTC chairman said the crypto bill currently being reviewed by lawmakers would require reporting on energy use and future policy discussions and “require incentives to move away from carbon-intensive energy sources.”

“We’ve all heard the statistics about the incredible amount of energy it takes to mine coins,” says Behnam. I would say that an event that reduced power consumption happened with Ethereum last night – a step in the right direction, but certainly not solving the problem.

CFTC Chairman Rustin Behnam speaks to the Senate Agriculture Committee on Thursday.

In his written testimony, Behnam said he supports the adoption of the Digital Goods Consumer Protection Act, which aims to expand the CFTC’s jurisdiction over the crypto market, adding that the regulatory body has “professionalism and experience” in the digital asset market. As CFTC chairman, most of the criticism surrounding the crypto space – Focused on fraud and fraud – can be solved by giving the agency “lenses to the business arena” instead of relying on consumers to bring enforcement issues.

“[The bill] It gives the CFTC the power to regulate the markets. This volatility, fraud, fraud – most of it will probably disappear because now we have a regulator, a police on the beat, and this prevents the activities of bad actors.

Related: Crypto Bill Needs Clarification on ‘Digital Commodity’ – Sheila Warren

The Ethereum merger took place on Thursday, marking the transition from proof-of-work to proof-of-work and effectively cutting the network’s energy consumption by an estimated 99.95%. The price of Ether (ETH) fell below $1,500 in the hours after the event, Cointelegraph reported that many crypto-minted nonfungible tokens with Merge theme.