Summary:
CFTC Chair Rostin Behnam testified before the US Senate Committee on Agriculture, Nutrition, and Forestry, reiterating that Bitcoin (BTC) and Ethereum (ETH) are commodities.
Behnam cited a recent court ruling in Illinois as evidence, solidifying the classification of these assets as commodities under the Commodity Exchange Act.
The CFTC Chair emphasized the lack of regulation in the spot market for digital assets, highlighting the potential risks to investors and the financial system.
Behnam outlined five key legislative priorities for better regulating digital commodities, including tailored rules, a permanent funding model, comprehensive disclosure requirements, enhanced KYC and AML privileges, and a comprehensive education program.
The CFTC Chair believes that his agency is ready to enforce crypto rules and advocates for a collaborative approach with the SEC to ensure a robust regulatory framework for digital asset markets.
CFTC Chair Calls for More Crypto Oversight: Bitcoin and Ethereum Officially Commodities
The Chair of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, has once again emphasized the need for increased regulatory oversight of crypto assets in the United States. In a recent testimony before the US Senate Committee on Agriculture, Nutrition, and Forestry, Behnam stated that Bitcoin (BTC) and Ethereum (ETH) are commodities, citing a recent court ruling in Illinois. This ruling, part of a $120 million Ponzi scheme case, solidified the classification of both assets as commodities under the Commodity Exchange Act.
Behnam highlighted the lack of regulation in the spot market for digital assets that are not securities, emphasizing the potential risks to investors and the financial system. He argued that ongoing inaction from other regulators would only exacerbate these risks.
The CFTC Chair outlined five key legislative priorities for better regulating digital commodities:
- Tailored rules to address the unique risk profile of cryptocurrencies.
- A permanent āfee-for-service modelā funding model.
- Requiring registrants to adhere to a ācomprehensive disclosure regimeā regarding their crypto assets.
- Bolstering KYC and AML privileges for the CFTC.
- Developing a comprehensive education and outreach program concerning crypto assets in the US.
Behnam believes that the CFTC is well-equipped to enforce crypto rules and emphasized the need for a collaborative approach with the Securities and Exchange Commission (SEC) to ensure a robust regulatory framework for digital asset markets.
This renewed call for stricter crypto regulation comes at a time when the industry is facing heightened scrutiny and uncertainty. The US government is still grappling with how to classify and regulate various crypto assets, and the CFTC's stance on Bitcoin and Ethereum as commodities could have significant implications for the future of the crypto market.
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