- CFTC Commissioner called Bitcoin and Ethereum commodities even with proof-of-stake.
- CFTC Chair has been asking US Congress for more regulatory power over Bitcoin.
- SEC chair believes PoS-based cryptocurrencies are securities.
On Wednesday, the Chamber of Digital Commerce Founder, Perianne Boring, asked the Commodity Futures Trading Commission (CFTC) Commissioner Christy Romeo, if Ethereum’s Merge (where the network upgraded to a proof-of-stake model), will have any policy implications. In response, Romeo replied that she, along with the CFTC, believes that even after transitioning to proof-of-stake, Ethereum is still a digital commodity.
Speaking on the topic, Romeo said:
When we look at Ethereum and all these other products, we are looking to see what is a commodity. The CFTC has long taken the position that Ethereum is a commodity. The definition of a commodity is very, very broad. I continue to take the position that Ethereum is a commodity, even with a proof-of-stake.
Moreover, CFTC Chair Rostin Behman shared on Wednesday that the regulator has been seeking authority from the US Congress to supervise cash markets in order for CFTC to regulate all cryptocurrencies as commodities.
After #Ethereum merged to Proof of Stake, I asked CFTC Commissioner Christy Goldsmith Romero (@CFTCcgr) if this will have any policy implications for #ETH. This was her response#EthereumMerge #PoS #Crypto #CryptoTwitter @CFTC pic.twitter.com/5f7ZECigZb
— Perianne (@PerianneDC) September 28, 2022
The chair believes that Bitcoin is losing out on immense growth potential as Amercia fails to implement regulatory measures, and will perform much better when overseen by CFTC.
Meanwhile, Securities and Exchange Commission (SEC) Chair Gary Gensler, who initially agreed that Bitcoin and Ethereum are commodities and should be placed under CFTC, changed his stance. According to Gensler, a proof-of-stake model means Ethereum and all other PoS-based cryptocurrencies are “security” under the Howey Test.
Both the SEC and CFTC are looking for a reasonable outcome to protect consumers & retail investors and develop certainty in the market. Gensler further believes that digital currencies are a new asset class and any regulatory decision concerning them should be handled legislatively.
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