CTFC Chair Believes Ethereum Is a Commodity, Disagreeing with SEC Chairman
In a recent Senate Agricultural Hearing, the Chair of the Commodity Futures Trading Commission (CTFC), Rostin Behnam, weighed in on the regulatory status of Ethereum (ETH).
He said that the second-largest cryptocurrency by market cap is a commodity. This contradicts the recent comments made by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, who suggested that all cryptocurrencies except Bitcoin (BTC) should be classified as securities.
Behnam stated that he believes ETH is “categorically a commodity” and falls under the jurisdiction of the CTFC. He cited the fact that Ethereum has been listed on exchanges for a significant amount of time, creating a “very direct jurisdictional hook” for the CTFC to police the derivatives and underlying markets.
.@CFTC Chair Rostin Behnam Says Stablecoins Are Commodities At Senate Agriculture Hearing https://t.co/g4jnFsSFkc @SenGillibrand pic.twitter.com/0Zg9ULZvVs
— blockchain tipsheet (@blockchaintpsht) March 8, 2023
Moreover, Behnam emphasized that the CTFC has thought deeply and carefully about the regulatory status of Ether futures, which were allowed to be listed on exchanges only after the CTFC was confident that ETH is a commodity asset.
According to Behnam, he is confident that other digital assets, such as stablecoins, also count as commodities and should be prudentially regulated financial instruments. He clarified that a regulatory framework around stablecoins may emerge, but that does not change their status as commodities in his view.
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Behnam’s comments provide further insight into the ongoing debate about the regulatory status of cryptocurrencies and highlight the differing opinions among regulatory bodies. While the SEC is taking a stricter stance on cryptocurrencies, the CTFC’s position may be more accommodating to crypto assets like ETH.
As the cryptocurrency market continues to evolve, how regulators will ultimately classify and regulate cryptocurrencies remains to be seen.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
