Regulation
CFTC Chairman Reiterates Bitcoin and Ether Are Commodities
Rostin Benham, chairman of the Commodity Futures Trading Commission (CFTC), stressed that bitcoin and ether are commodities and should fall under his agency’s jurisdiction. He discussed the two major crypto assets during a hearing with the Senate Agriculture, Nutrition, and Forestry Committee on July 9.
He cited a recent case his organization brought against an Oregon scammer who used cryptocurrencies to defraud people, in which the judge ruled that bitcoin and ether were commodities. That decision by an Illinois court is the most recent example of these assets being classified as commodities.
This case is significant because it involved a $120 million Ponzi scheme, the results of which caught the attention of many. The judge, who sided with the CFTC in this case, also characterized other assets used by the scammer in his scheme, Olympus (OHM) and KlimaDAO (KLIMA), as commodities.
So, Benham believes it’s time for the CFTC to take charge of enforcing laws on digital assets that are clearly not securities. Press releaseHe explained that regulatory inaction and lack of regulation of cryptocurrencies will only amplify the risks associated with the digital asset space.
“I do not believe that inaction will stifle public interest in digital assets; it will only increase the risks to our financial markets and investors,” Benham said, adding: “Federal legislation is urgently needed to create a path toward a regulatory framework that will protect American investors and potentially the financial system from future risks.”
Benham also explained how the CFTC fits into all of this: “Market regulators like the CFTC were created for precisely the situations we find ourselves in today.” He also criticized the long wait for cryptocurrency regulations in the United States and the government’s turning a blind eye to the asset class to delegitimize its existence: “The misconception that regulating an asset class legitimizes it misses the point of our responsibilities.”