CFTC Chairman States Bitcoin And Ethereum Are Considered Commodities• May 24, 2022 3:12 pm • Comments
There has been multiple discussions so far on whether or not the SEC or the CFTC would be playing a more dominant role when it comes to regulating the crypto industry going forward.
Recently, the chairman of the CFTC publicly stated that he was certain that Bitcoin and Ether are considered commodities.
If they are considered commodities, then it would mean that it would make sense for the CFTC instead to regulate these digital assets instead of the SEC.
After all, the SEC is only supposed to regulate assets that are considered securities and not commodities.
Behnam, the chair of the CFTC, also expanded on his thoughts and shared that the largest crypto assets should also be considered commodities.
The CFTC and SEC both want to regulate #crypto thoughtfully, protect customers, and protect financial stability. #cryptocurrency #bitcoin $BTC #Nowheredaohttps://t.co/nPBEbtlIw4
— Wanppth (@wanppth) May 23, 2022
The CFTC boss noted that within the crypto space, there will be some coins that are securities and some that are commodities.
When asked to comment on SEC Chairman Gary Gensler’s claim that most of the crypto tokens out there are securities, Behnam stressed that the largest cryptocurrencies are commodities. He emphasized:
Well, I can say for sure bitcoin … is a commodity. Ether as well.
Admitting that there may be a lot of security coins, the CFTC chief noted, “there are plenty of community coins.”
He clarified: “I think it makes sense that each agency has jurisdiction over commodities and securities respectively.”
Given this comment from Behnam, investors are hoping that the regulation of XRP may also fall under the CFTC given that XRP is most definitely considered one of the largest cryptocurrencies.
Even with the current lawsuit against the SEC, XRP remains within the top 10 cryptocurrencies by total market cap and continues to expand on an international level despite the regulatory roadblock in the US.
So far, the chair has also stated that he doesn’t see the CFTC and the SEC as competing against each other, but rather that they are just acting in their best interests which may sometimes collide.
The end goal stated is that both agencies do agree that there needs to be better regulations within the industry, but the approach that each agency is taking to achieve that seems to be quite different.
CFTC Chairman Confirms Bitcoin, Ether Are Commodities: The chairman of the U.S. Commodity Futures Trading Commission (CFTC) says he is certain bitcoin and ether are commodities. He outlined how his agency is working with the U.S. Securities and Exchange… https://t.co/GCyjBzY5oe pic.twitter.com/wLgNBMlAxO
— Cryptonaut (@qubitinsider) May 24, 2022
Admitting that there could also be a variety of safety cash, the CFTC chief famous, “there are many group cash.” He clarified: “I feel it is sensible that every company has jurisdiction over commodities and securities respectively.”
The CFTC chairman was requested whether or not there may be any disagreement between the 2 companies. “I wouldn’t say there may be disagreement,” he replied, emphasizing that every company tries to do what’s finest.
Commenting on the crypto market sell-off final week, Behnam stated:
Lots of people obtained harm. Loads of worth was misplaced out there, and there actually aren’t any buyer protections proper now.
He concluded that each the CFTC and the SEC need to regulate the crypto sector “thoughtfully,” shield clients, and shield monetary stability.
The chairman of the U.S. Commodity Futures Trading Commission (CFTC) says he is certain #bitcoin and ether are commodities. Noting that “there are no customer protections right now in the crypto market.”#BMEanalytics #cryptocurrency #NFTs #GameFi pic.twitter.com/1X8y67w8jH
— Black Mamba Explorer (@bmv_explorer) May 24, 2022
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