🤯 Picked by our AI, this stock rallied more than Nvidia this month, yielding 94% since MarchSee the stock

CFTC Boss Rostin Behnam Reaffirms Ethereum’s (ETH) Classification as a Commodity

Published 10/25/2022, 06:50 AM
Updated 10/25/2022, 07:30 AM
CFTC Boss Rostin Behnam Reaffirms Ethereum’s (ETH) Classification as a Commodity
ETH/USD
-

Addressing the ongoing debate on token classification, Commodity Futures Trading Commission Chairperson Rostin Behnam has reiterated the agency’s stance that Ethereum (ETH), the second largest cryptocurrency, is a commodity.

CFTC Classifies Ethereum as a Commodity

Speaking about the CFTC’s current and future role in the regulation of the fintech and crypto asset industries at the “Regulating Financial Innovation: The Future of Crypto and Blockchain” event, Behnam asserted that he sees the Ether as a commodity—not a security.

The CFTC Chairman reiterated his stance on Ethereum’s status on Monday, October 24th, while speaking at the symposium hosted by Rutgers Law, Wall Street Blockchain Alliance, and Lowenstein Sandler in Manhattan.

While the CFTC chairman has maintained that Ethereum is a commodity, the Securities and Exchange Commission (SEC) holds a conflicting opinion. The SEC, which has become infamous in the crypto space for targeting protocols for offering what they deem to be unregistered securities, seemingly believes that Ethereum falls under its purview following its transition to Proof of Stake.

The CFTC in disagreement with the SEC?

In his rebuttal to the SEC’s stance on Ethereum’s classification, the CFTC Chairperson said: “Chairman [Gary] Gensler thinks otherwise—or at least hasn’t certainly declared one or the other.”

Behnam also dispelled the notions of disagreement between the two regulatory agencies, however, explaining that the lack of regulatory clarity lies with Congress, not the agencies.

On the Flipside

  • CFTC Chairpeson Behnam also debunked the industry-held belief that the CFTC is the more favorable regulator, firmly stating: “Our enforcement record speaks for itself.”

Why You Should Care

The classification of tokens amid the lack of regulatory clarity has been a pressing issue, and remains a massive impediment to the progress of crypto’s adoption in the U.S.

The SEC’s stance appears to conflict with the CFTC:

SEC Chair Gary Gensler Hints At PoS Coins As Potential Securities

Read more on the debate around Ethereum’s status in the crypto community:

MicroStrategy’s Michael Saylor Says Ethereum Is “Obviously” a Security

See original on DailyCoin

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.