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Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam stated on July 10 that an Illinois court has confirmed Bitcoin and Ethereum are digital commodities.
According to Fox Business reporter Eleanor Terrett, Behnam noted during a hearing that, under the Commodity Exchange Act, 70-80% of the cryptocurrency market, including Bitcoin and Ethereum, consists of non-securities.
CFTC Chairman Behnam says an Illinois court confirmed that $BTC and $ETH are digital commodities under the Commodity Exchange Act.
— Eleanor Terrett (@EleanorTerrett) July 10, 2024
Digital Commodities vs. Securities
Behnam’s position contrasts with the Securities and Exchange Commission’s (SEC) ongoing argument that certain cryptocurrencies, such as Ethereum, qualify as securities and should be regulated by the agency.
When Senator Sherrod Brown questioned Behnam about lessons learned from previous cryptocurrency fraud cases, Behnam responded that the underlying technology of digital assets is “very unique and different” from traditional asset classes. This distinction, he noted, compels the agency to “ask different questions around cybersecurity and operational resilience.”
Additionally, Senator Cory Booker expressed concern that regulatory responsibilities had been left to the SEC and CFTC, resulting in a market still “rife with abuse.” He highlighted that nearly half of the cases on the CFTC’s enforcement docket involve cryptocurrency, describing this as “extraordinary.”
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In response to Booker’s comments, Behnam acknowledged the challenge, calling it a “staggering statistic” for an agency responsible for overseeing trillion-dollar markets.
He emphasized that the agency lacks both jurisdiction and funding to fully regulate the cryptocurrency industry, a gap that jeopardizes both traditional and crypto markets.
Jurisdictional Conflict Between SEC and CFTC
Senator Roger Marshall pointed to the ongoing jurisdictional conflict between the SEC and CFTC as both agencies struggle to determine which digital assets are securities and which are commodities.
“Wouldn’t it be simpler if we put this whole thing under the CFTC’s jurisdiction?” Marshall asked.
“I speak for myself, but I’d be happy to do that,” Behnam replied. “I think we have the expertise and the capacity.”
Previously, former Department of Justice Attorney Seth Goertz explained in an interview with Cryptonews.com how the SEC v. Coinbase case could redefine cryptocurrency regulation in the United States.
The post Illinois Court Says Bitcoin And Ethereum Are Digital Commodities: CFTC Chair appeared first on Cryptonews.
