important point

  • CFTC Chairman Rostin Behnam believes stablecoins and Ether will become commodities.

  • The CFTC has always argued that Bitcoin, Ether, and other cryptocurrencies are commodities.

  • Behnam seeks a suitable regulatory framework to cover the cryptocurrency market.

Stablecoins and Ether are considered commodities

Commodity Futures Trading Commission Chairman Rostin Benham told the U.S. Senate that Ether and stablecoins should be considered commodities.

He made this statement during a Senate Agriculture Hearing on Wednesday, March 8. When asked by Senator Kirsten Gillibrand about the discrepancy, Venham said the agency views stablecoins as commodities. He said;

“Despite the regulatory framework around stablecoins, stablecoins will become commodities. It was clear to our enforcement team and committee that the stablecoin, Tether, was a commodity.”

The CFTC has argued that some digital assets, including Bitcoin and Ether, are commodities.

When asked during a Senate hearing what evidence the agency would use to gain regulatory leverage over ether, the CFTC chair said that if he didn’t believe it was a commodity asset, he would It said it would not allow futures contracts to be listed on the CFTC exchange.

“To do so without significant legal defenses to support our claims poses litigation risk and agency credibility risk. [the] Assets are commodities. ”

US still needs a regulatory framework for cryptocurrencies

Regulation of US cryptocurrency companies is entrusted to the SEC and CFTC. However, there is no clear regulatory framework for cryptocurrency companies to operate in the United States.

The SEC has been active in regulating cryptocurrency companies that it believes violate securities laws.

last month, SEC indicts Nishad Singha former lead engineer at cryptocurrency exchange FTX, deceiving investors in the now-collapsed crypto trading platform.

regulators too robin hood investigation About its cryptocurrency activity.

By Jules

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