U.S. CFTC Chair Warns of Risks in Spot Bitcoin ETFs as OKX Announces Mining Pool Shutdown

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Headlines

U.S. CFTC Chair: Spot Bitcoin ETFs Pose Risks, Urgent Need for Federal Legislation

Rostin Behnam, Chair of the Commodity Futures Trading Commission (CFTC), expressed concerns over risks associated with recently approved spot Bitcoin ETFs during an American Bar Association event. He reiterated calls for federal legislation to regulate cryptocurrencies, stating:

"I fear regulatory approval of Bitcoin ETPs introduces risks. Retail and institutional investors might misinterpret technical approvals as endorsements of the underlying asset’s regulatory framework. Federal legislation is now more urgent than ever."

Behnam highlighted unresolved issues like conflicts of interest and customer protection, noting the lack of effective measures to address opaque practices in digital asset markets.

OKX to Discontinue Mining Pool Products and Services

OKX announced via official notice the phased shutdown of its mining pool services:

👉 Explore OKX’s updated product offerings

Market Snapshot (Source: CoinMarketCap)

TokenPrice24h Change
BTC$41,765+4.63%
ETH$2,275.32+2.74%
BNB$302.85+3.68%
SOL$92.66+6.23%

Policy Updates

SEC Commissioner Criticizes Fear of Decentralization

Hester Peirce, SEC Commissioner, remarked:

"Regulators fear decentralization because it challenges control. Yet, this very feature strengthens financial system resilience."

Hong Kong SFC Flags Suspicious Crypto Staking Programs

The Securities and Futures Commission (SFC) warned against two staking products—Floki Staking Program and TokenFi Staking Program—promising 30%-100% annual returns, citing unverified viability and lack of authorization.

South Korea Advances Crypto Regulations

South Korea’s FIU proposed amendments to the Special Financial Information Act, introducing stricter bank account issuance standards for virtual asset operators and aligning with the upcoming Virtual Asset User Protection Act.

Blockchain & Crypto Developments

Spotlight: BlackRock’s Bitcoin ETF Hits $2B AUM
BlackRock’s IBIT became the first spot Bitcoin ETF (excluding Grayscale’s GBTC) to surpass $2B in assets, holding 49,952 BTC as of January 25.

Economy Brief

Crypto Hedge Funds Explained
These funds pool capital to strategically trade digital assets, employing tactics like derivatives trading to mitigate volatility and generate returns. Unlike traditional funds, they specialize in crypto markets, acting as intermediaries between investors and digital asset opportunities.

FAQ

Q: Why did OKX shut down mining pools?
A: Business restructuring prompted the decision, with full termination by February 26, 2024.

Q: Are high-yield staking programs safe?
A: The Hong Kong SFC advises caution, as unauthorized products often lack transparency.

Q: How does BlackRock’s ETF impact crypto?
A: Institutional adoption signals market maturity but requires vigilant regulation.

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Disclaimer: Content is informational only. Invest responsibly and assess risks thoroughly.


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