CFTC Chairman Confirms Bitcoin and Ether Are Commodities

The Chairman of the Commodity Futures Trading Commission (CFTC) of the United States said he is confident that Bitcoin and Ethereum are commodities. “There is currently no customer protection in the cryptocurrency market,” he said, explaining how his agency is working with the US Securities and Exchange Commission (SEC) to regulate the crypto sector.

Bitcoin and Ether are ‘definite’ commodities

CFTC Chairman Rostin Behnam discussed cryptocurrency regulation by the CFTC and the SEC in an interview with CNBC last week.

The chairman was asked to comment on a bill in Congress that would put the SEC in charge of security tokens and the CFTC in charge of commodity tokens.

“This is an old issue between the CFTC and the SEC. We have a good relationship historically. In my opinion, it makes sense in this space for the Commodity Futures Trading Commission to regulate commodities and the SEC to regulate securities,” Behnam elaborated.

The CFTC boss mentioned that within the crypto space, there will be coins, which are securities, and coins, which are commodities.

Asked for comment on SEC Chairman Gary Gensler’s allegations, Behnam emphasized that the biggest cryptocurrencies are commodities. He emphasized:

Well, I can say for sure that Bitcoin…this is a commodity. ether too.

“There are a lot of community coins,” the CFTC director acknowledged, acknowledging that there can be a lot of security coins. “I think it makes sense for each institution to have separate jurisdiction over commodities and securities,” he explained.

The CFTC chairman asked if there were any disagreements between the two institutions. He replied, “I will not say that there are differences of opinion,” and emphasized that each agency is doing its best.

Regarding the cryptocurrency market sell-off last week, Behnam said:

Many were injured. A lot of value has been lost in the market and there is currently no way to protect our customers.

He concludes that both the CFTC and the SEC want to regulate the crypto sector “thoughtfully”, protect customers and safeguard financial stability.

What do you think of the CFTC Chairman’s remarks? Let us know in the comments section below.

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Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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