Rostin Behnam, the US CFTC Chairman said both Ether and Bitcoin can be placed in the commodity category. He gave this opinion last week during an interview with CNBC. The Commodity Futures Trading Commission Chairman said his agency and SEC have plans to regulate this crypto industry. According to him, consumers are currently not protected in this sector.
When asked about a bill that allows SEC control over security and CFTC over commodity tokens, he said both departments have maintained an excellent relationship. SEC is the right organization to regulate securities while CFTC should regulate commodities.
He emphasized top cryptocurrencies are mainly commodities. He especially mentioned Bitcoin and Ether and declared these cryptocurrencies commodities.
Lots of community coins are circulating, according to him. He clarified that both SEC and CFTC have jurisdiction over securities and commodities respectively. Both agencies do not have any disagreement.
Commenting on last week’s crypto market downslide, he said lots of investors have been hurt due to this downswing. The drip also made it clear investors in this market are not protected. The goal of both agencies will be to regulate this crypto industry to protect the financial stability and customers.
Bitcoin and Ether like cryptocurrencies have been declared a commodity, currency and investment. All sides have proponents and detractors. Most crypto experts consider Bitcoin as a commodity rather than a currency.
However, without a clear definition from regulatory authorities, people have been using different terms for these cryptocurrencies. This new statement from CFTC Chairman should bring some clarity in this sector about the cryptocurrency’s status as a commodity or currency.