CFTC Chairman: Most cryptocurrencies are not securities, court confirms BTC, ETH are commodities

The Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Rostin Behnam, urged Congress to take immediate action and pass legislation on digital assets in his testimony. He reiterated that Ethereum and most cryptocurrencies fall under the category of commodities.

CFTC Chairman: Court Rules BTC and ETH as Commodities

According to FOX reporter Eleanor Terrett's tweet, CFTC Chairman Rostin Behnam stated at a digital assets industry hearing on the 10th that an Illinois court has confirmed that BTC and ETH are digital commodities under the Commodity Exchange Act.

He also emphasized that up to 70-80% of cryptocurrencies do not fall under the category of securities.

Congress Fails to Enact Regulatory Measures

In his testimony, Rostin Behnam stated that Congress has failed to enact regulatory measures for cryptocurrencies, which harms investor interests and puts the United States at a competitive disadvantage.

He said:

I think the most important thing is to allow the CFTC to fill regulatory gaps, and Congress must act quickly so that regulatory agencies like the CFTC can provide essential user protection for the core of the U.S. financial markets.

CFTC, SEC Regulatory Turf War

Rostin Behnam believes that legislation should be enacted to determine how the CFTC and SEC define digital commodities and securities. However, senior Republican lawmaker John Boozman countered:

The CFTC should not exceed its jurisdiction and interfere with other regulatory bodies outside of its authority, such as the SEC, Treasury Department, and the Federal Reserve.

Senator Cory Booker also mentioned:

We have entrusted the SEC and CFTC to do our job, yet the market is still filled with abusive behavior. Nearly half of CFTC's enforcement actions are related to cryptocurrencies.

Rostin Behnam explained that the CFTC must regulate a multi-trillion-dollar market without jurisdiction or budget, which is indeed a staggering figure and poses risks to both the securities and commodities markets, while reiterating the urgency of legislation.

Rostin Behnam emphasized:

Wouldn't it be simpler if we handed everything over to the CFTC's jurisdiction? I'm speaking for myself, but I'm happy to do so, as I believe we have the expertise and capabilities.

CFTC Chairman: Focus on Regulating Centralized Entities

Rostin Behnam concluded by stating that the primary task at hand should be regulating centralized exchanges rather than DeFi.

I firmly believe that DeFi falls within the regulatory scope, but considering its unique nature, perhaps we need to take a unique approach.

The U.S. House of Representatives has made far more progress on cryptocurrency legislation than the Senate, having already passed a comprehensive market structure bill with strong bipartisan support. However, as the November presidential election approaches, time is running out for Congress to address complex regulatory legislation in this term.

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