Bitcoin and Ether are Commodities, says CFTC Chairman

Bitcoin and Ether are Commodities, says CFTC Chairman
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Bitcoin and Ether are Commodities, says CFTC Chairman

According to United States' Commodity Futures Trading Commission (CFTC) chairman, Bitcoin and Ether are commodities.

05/23/2022

According to United States’ Commodity Futures Trading Commission (CFTC) chairman, Bitcoin and Ether are commodities.

He described how his organization collaborates with the US. The Securities and Exchange Commission (SEC) will regulate the cryptocurrency sector, stating that “Currently, there are no customer protections in the crypto market.”

Bitcoin and Ether Are Commodities ‘For Sure’

In an interview with CNBC last week, CFTC Chairman Rostin Behnam discussed the CFTC and SEC’s regulation of cryptocurrencies.

The chairman commented on a bill in Congress that would give the SEC authority over security tokens and also the CFTC authority over commodity tokens.

“This is little bit of an age-old issue between the CFTC and the SEC. We have a great relationship historically. In this environment, it makes sense in my opinion for commodities to be regulated by the Commodity Futures Trading Commission and also securities to be controlled by the Securities and Exchange Commission,” Behnam explained.

The CFTC chairman stated that within the crypto space, some coins will be securities and  also others will be 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.”

Both CFTC and SEC want to regulate the crypto sector

Despite admitting that there may be a lot of security coins, the CFTC director remarked that “there are plenty of community coins,” adding, “I think it makes logical that each agency has authority over commodities and securities separately.”

In addition, the chairman of the CFTC was asked if there was any disagreement between the two agencies. “I wouldn’t say there is disagreement,” he said, noting that each agency does its best.

Behnam commented on the crypto market sell-off last week:

“A lot of people got hurt. A lot of value was lost in the market, and also there really are no customer protections right now.”

He concluded that the CFTC and the SEC both want to regulate the cryptocurrency business “thoughtfully,” secure clients, and  also maintain financial stability.

By Elah Mae Ariate Wozinga Staff

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