Regulation
CFTC Chairman Declares BTC and ETH Are NOT Securities!
We consider Bitcoin and ETH to be a disruptive technology, and during a recent Senate Committee hearing, CFTC Chairman Rostin Behnam made significant statements about cryptocurrencies. He reiterated that Bitcoin and Ethereum are commodities under the Commodities Exchange Act. This classification follows a recent ruling by an Illinois district court that upheld their status.
According to Fox Business reporter Eleanor Terrett, CFTC Chairman Behnam said that an Illinois court has confirmed that $BTC and $ETH are digital assets under the Commodity Exchange Act. Here’s what he shared on the X handle:
Source: X (ex Twitter)
The difference between commodities and securities is crucial in regulation because commodities like gold or oil are tradable goods. While securities represent ownership of a company. This classification places Bitcoin and Ethereum under the jurisdiction of the CFTC. It marks a clear distinction from assets regulated by the SEC.
Here’s Behnam’s statement! That 70% to 80% of cryptocurrencies are not securities, challenging SEC Chairman Gary Gensler’s view. This difference highlights the ongoing debate over how to regulate digital assets.
Considering Bitcoin and Ethereum as commodities provides clarity. It could lead to broader acceptance in the cryptocurrency market. This decision sets a precedent for future decisions and could reduce the uncertainty that has slowed market growth.
Looking ahead, Behnam called for legislative measures to strengthen the CFTC’s oversight of non-security tokens. He also stressed the need for strong investor protections amid market volatility. His statements demonstrate a proactive approach to balancing regulation and fostering innovation in the cryptocurrency space.
We are currently in a phase of rapid evolution in terms of technology and precautions in the Defi world. As regulations evolve, the distinction between securities and commodities will be critical. Behnam’s remarks reflect the CFTC’s commitment to adapting regulations to the rapidly evolving digital landscape.