CFTC chair: Competition with SEC creates difficulties in crypto regulation

Rostin Behnam also stated that he considers most cryptocurrencies to be commodities

13.12.2023 - 18:36

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3 min

What’s new? US Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam believes that many cryptocurrencies fall under the definition of commodities under current law. This view contradicts Securities and Exchange Commission (SEC) Chairman Gary Gensler, who previously stated thatall cryptocurrencies except bitcoin could be recognized as investment contracts. In a new interview on CNBC, Behnam acknowledged that there is competition between the agencies for control of the industry, and it creates difficulties in regulating digital assets.

Material by International Business Times

What else is known? Late last year, Behnam argued that bitcoin is the only cryptocurrency that can be considered a commodity. At the time, he also called for a regulatory framework for cryptocurrencies as soon as possible, while giving the CFTC more authority to regulate the sector.

Already in March of this year, the CFTC filed a lawsuit against the Binance crypto exchange for violating the rules of derivatives trading, where it categorized Ethereum and Litecoin as commodities in addition to bitcoin. Behnam later said that not only assets from the lawsuit but also all stablecoins should be categorized as commodities.

CFTC chair calls for the regulation of decentralized exchanges

Rostin Behnam believes that the CFTC or SEC should regulate platforms, even if they are “just code”

In a new interview, Behnam reiterated the urgent need for regulations to regulate the crypto market, adding that “members in Congress are trying to figure out the landscape.”

Earlier this year, the relevant committee of the House of Representatives adopted two major bills that will clarify the procedure for applying existing financial rules to crypto firms. To take effect, the documents will need to get the approval of both houses of Congress.

While Behnam acknowledged that there is a “turf war” going on between the CFTC and SEC, he also noted the agencies’ active cooperation, as “both agencies share the same interest in protecting the US markets, the country’s financial ecosystem and the consumers.”

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