Ethereum (ETH) is a Commodity Says CFTC Chairman
The CFTC chairman said he considers the largest altcoin by market capitalization a commodity, but SEC head Gary Gensler disagrees.
Benham pointed out that Securities and Exchange Commission (SEC) Chairman Gary Gensler has a different opinion on the matter.
Gensler has repeatedly declined to comment on the regulatory status of Ethereum (ETH). However, he argues that there are good reasons for the second-largest cryptocurrency to be classified as an unregistered security as early as 2018.
At the same time, the chairman of the SEC has repeatedly recognized Bitcoin (BTC) as a commodity, which means that the largest cryptocurrency is not under the jurisdiction of the SEC.
The cryptocurrency industry lobby has persistently pushed to give the CFTC more power over the cryptocurrency market. The commodities regulator will supposedly be more lenient on digital assets.
Benham dismissed the notion that the CFTC would be softer on cryptocurrencies, saying the agency’s enforcement record “speaks for itself”.
He argued that the CFTC and SEC should work together to regulate cryptocurrencies in an effective manner. Benham also said that regulators may not be doing enough to provide clarity to industry participants.
What is the role of the CFTC in the US?
The US Commodity Futures Trading Commission (CFTC) is an independent agency of the government that regulates futures and options markets.
Its mission is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and options markets. The CFTC oversees exchanges, clearinghouses, and other intermediaries that facilitate transactions in these markets.