Bitcoin and Ether Are Commodities: CFTC Chairman
CFTC chairman says bitcoins and ether are
commodities. The CFTC chief informed that the SEC is working closely with his
agency in order to regulate the crypto market, explaining that there are no
consumer protections in the crypto market.
One of the most important federal regulators, the CFTC, occasionally is proposed as having primary regulatory authority over digital assets in the United States, particularly as legislation is being drafted in Congress to regulate the industry.
As part of an interview with CNBC last week, CFTC Chairman Rostin Behnam discussed the regulatory framework for cryptocurrencies and security tokens that the CFTC and the SEC have developed. Furthermore, the chairman was asked about a proposed bill in Congress that would make the SEC responsible for security tokens and the CFTC for commodity tokens.
Behnam explains, “This is a little bit of an age-old issue between the CFTC and the SEC. We have a great relationship historically … Within this space, in my view, it makes sense for commodities to be regulated by the Commodity Futures Trading Commission and securities to be regulated by the SEC.”
CFTC head noted, some crypto coins are securities, while others are commodities.
Bitcoin regulation can either be beneficial or detrimental to cryptocurrency adoption. Regulation can help protect the interests of users and prevent scams from occurring. Regulations will also create a framework for investors to work within to continue to expand the growth of the ecosystem. Additionally, the blockchain ecosystem, which continues to grow exponentially as it allows the creation of innovative projects like Decentraland, an online world where users can design their own avatars and buy plots of virtual land, might help to accelerate the mainstream adoption of Bitcoin.
CBW - External Analyst