Regulation
70-80% of Cryptocurrencies Are Not Securities: CFTC Chairman
Goods Futures CFTC Chairman Rostin Behnam has said that 70-80% of cryptocurrencies are not securities. This view, reported by journalist Eleanor Terrett, provides crucial relief to the cryptocurrency industry, which has been embroiled in regulatory disputes with the U.S. Securities and Exchange Commission (SEC) for years.
Behnam also called for a balanced framework for classifying tokens as commodities or securities. He also stressed the importance of continued collaboration between the SEC and the CFTC.
CFTC Wants to Regulate Cryptocurrency Industry
During a discussion with Senator Roger Marshall about the jurisdictional dispute between the SEC and the CFTC, Behnam supported full oversight of the cryptocurrency market by the CFTC. suggested that this could simplify the regulation, although it would require redefining what is meant by securities and raw materials.
“I think we have the [crypto regulation] competence and capability,” Behnam said.
To know more: Cryptocurrency Regulation: What Are the Pros and Cons?
Behnam’s position contrasts sharply with that of SEC Chairman Gary Gensler, who supports that all cryptocurrencies, except Bitcoin (BTC)are securities. The classification of these digital assets has significant regulatory implications, determining their governing bodies.
Furthermore, a recent decision by the U.S. District Court in the Northern District of Illinois has strengthened the CFTC’s view, ruling that Bitcoin and Ethereum (ETH) are goods. The Court also Altcoins considered as commodities such as Olympus (OHM) and KlimaDAO (KLIMA) under the Commodity Exchange Act.
Behnam emphasized the CFTC’s active role in the cryptocurrency industry.
“Nowhere have we been more active than in the digital asset space. In fiscal 2023, we filed 47 actions involving digital commodity conduct, representing more than 49 percent of all CFTC actions filed during that period,” Behnam She said.
The president also emphasized the unsustainability of current efforts without a formal regulatory framework. He reiterated the urgent need for congressional action, as highlighted in the 2022 Financial Stability Oversight Council report.
To know more: Who Is Gary Gensler? Everything You Need to Know About the SEC Chairman
Reflecting on his seven years at the CFTC, Behnam observed significant market evolution, with periods of high volatility and numerous scandals. He noted the growing involvement of established financial institutions in the cryptocurrency industry and expressed concern about the lack of investor protection regulations.
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