CFTC Chairman Rostin Behnam Asserts Bitcoin and Ether as Commodities; Urges for Clearer Regulations
Summary:
In a recent hearing with the House Committee on Agriculture, Commodity Futures Trading Commission Chairman, Rostin Behnam, argued that Bitcoin and Ether are commodities. This comes amid ongoing debates over the classification of Ether. Behnam's statement was in reference to a prior decision by SEC licensed broker-dealer, Prometheum, to offer custody services for Ether, which he clarified was an independent decision, not influenced by the SEC. He also emphasized the necessity for clear regulations on digital assets and urged Congress to take action.
In a recent hearing held on March 6 with the House Committee on Agriculture, Rostin Behnam, the chairman of the Commodity Futures Trading Commission (CFTC), stated that both Bitcoin and Ether should be classed as commodities. This statement was made in the context of a prior decision taken by the SEC licensed broker-dealer, Prometheum, to offer custody services for Ether. Behnam specified that this was a standalone decision taken by Prometheum and not influenced or recommended by the SEC.
Behnam presented doubts regarding the compatibility of Prometheum’s decision with the SEC’s perspective of Ether. He emphasised the importance especially considering the SEC’s reaction to the broker-dealer's decision and how crucial it is. The key point being, if the SEC verifies Prometheum’s decision substantiating Ether as a security, it could potentially lead to a confusion in regulatory rules with the entities listing Ether futures contracts being non-compliant with SEC rules instead of CFTC rules.
The question of Ether’s status remains uncertain as SEC Chair, Gary Gensler, hasn't specifically stated whether Ether is deemed a security or commodity. In his speech to the House Agriculture Committee, Behnam highlighted the importance of preserving market integrity, expressing that the classification of Ether as a commodity has beena long-standing decision that has efficiently served the market over the years.
Behnam expressed that due to evolving markets and advancing technology, the CFTC occasionally encounters the boundaries of extant laws. The increasing participation in the crypto market has probed the current regulatory framework's scope.
He expressed that the absence of legislation to fill the regulatory gap over the digital commodity asset spot market has not deterred public interest in digital assets. Concluding his address, Behnam urged Congress to act promptly.
Published At
3/7/2024 3:44:28 AM
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