The CFTC Chairman reiterates that BTC and ETH are commodities

The power struggle between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over the regulation of the crypto market has always left investors confused about what rules to follow.

This week, CFTC Chairman Rostin Behnam reiterated that Bitcoin (BTC) and Ether (ETH) are commodities, not securities.

Ether is a commodity

“I would suggest identifying [Ether] as a commodity, but SEC Chairman Gensler doesn’t think so,” Behnam said Monday at a Manhattan event attended by Rutgers University, the Wall Street Blockchain Alliance and law firm Lowenstein Sandler.

Although SEC Chairman Gary Gensler refers to Bitcoin as a commodity, he does not see the same about other crypto assets such as Ether and XRP.

Last month, after the Ethereum blockchain moved from proof-of-work (PoW) to proof-of-stake (PoS), Gensler hinted that Ether could be classified as a security.

While the SEC has not yet verified whether Ether will pass the Howey test, Gensler said staking may be officially considered an investment. If ETH passes the Howey test, it must be registered with the SEC as a security.

But Behnam disagrees.

Considering that the SEC has been cracking down cryptocurrency-related business entities, Behnam has also used this to dispel the widely held belief that the CFTC will be a more favorable regulator.

The CFTC and SEC continue to work together

The CFTC chairman further explained that, contrary to popular belief, the Digital Goods Consumer Protection Act does not give the CFTC full powers to classify cryptocurrencies. The bill was drafted by Senators Debbie Stabenow and John Boozman of the Senate Agriculture Committee.

Based on the Act, Behnam is confident that the CFTC and SEC will continue to work together.

“This is a very important issue. How do we work with the SEC when a product is in a gray area? ”

Behnam then replied that the two institutions must work together to come up with solutions to legal and policy issues that clarify the classification of cryptocurrencies. The Digital Goods Consumer Protection Act bill will help establish a regulatory framework and provide regulatory resources for the CFTC.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-cftc-chairman-reiterates-that-btc-and-eth-are-commodities/
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