Regulation
CFTC Opposes Gary Gensler on True Nature of Cryptocurrencies!
10:00 ▪ 3 minute read ▪ by Eddy S.
In a financial world where the distinction between securities and commodities is increasingly blurred, a recent statement by Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam has caused a stir. Speaking before the Senate Agriculture Committee, Behnam said that 70-80% of cryptocurrencies are not considered securities.
CFTC Chairman vs. Gary Gensler on Regulation Issue!
This statement follows a ruling by an Illinois court that recognized Bitcoin and Ethereum as commodities, which fall under the jurisdiction of the CFTC under the Commodity Exchange Act. This legal clarification is essential for legal certainty, especially in the current context in which the legal classification of various digital assets is being debated.
Behnam’s position represents a direct challenge to the Securities and Exchange Commission (SEC), as its chairman, Gary Gensler, has previously stated that most cryptocurrencies are securities. The regulatory divergence between the two agencies responsible for overseeing financial markets is now evident.
Implications for the cryptocurrency industry
Behnam also asked new legislative authority to allow the CFTC to regulate non-securities digital assets. This move aims to protect investors and provide a clear regulatory framework for the cryptocurrency industry.
If most cryptocurrencies were indeed classified as non-securities, it could mean less stringent regulation and more flexibility for innovation in the cryptocurrency space. However, it also raises questions about investor protection and the need for appropriate regulations to prevent abuse and fraud.
Behnam’s statement could mark a turning point in cryptocurrency regulation. As the debate over the classification of digital assets continues, the clarity provided by the CFTC is a step forward in better understanding and regulating the crypto space. That said, caution is still advised for investors who must navigate an evolving regulatory landscape while protecting their investments from potential risks.
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Eddy S.
The world is evolving and adapting is the best weapon to survive in this wavy universe. Originally a cryptocurrency community manager, I am interested in everything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, there is nothing better than writing informative and relaxed articles.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.