Ethereum
CFTC Chairman Reiterates to US Senate That Bitcoin and Ethereum Are Commodities
CFTC Chairman Reiterates to US Senate That Bitcoin and Ethereum Are Commodities
U.S. Commodity Futures Trading Commission (CFTC) Director Rostin Behnam has once again advocated for his agency to oversee Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, by classifying them as commodities. Speaking before the U.S. Senate committee on July 9, Behnam referenced a recent Illinois court ruling that reinforces that classification.
The court’s July 3 ruling is part of a $120 million Ponzi scheme case involving an Oregon man accused of fraud. The Illinois district court judge ruled that both Bitcoin and Ethereum are considered commodities under the Commodity Exchange Act. The ruling also extended that classification to Olympus (OHM) and KlimaDAO (KLIMA).
Behnam also cited a 2022 report from the Financial Stability Oversight Council (FSOC) that highlighted a regulatory gap in the spot market for digital assets that are not securities, suggesting the CFTC should play a larger role in overseeing digital commodities.
Behnam stressed that inaction by other U.S. regulators would not diminish public interest in digital assets and could potentially increase risks to financial markets and investors. “In short, our current trajectory is unsustainable. Federal legislation is urgently needed to create a path toward a regulatory framework that will protect U.S. investors and potentially the financial system from future risks,” he said.
The CFTC Chairman outlined five key legislative priorities that he believes his agency could implement to better regulate digital products. These priorities include crafting rules tailored to the unique risk profile of cryptocurrencies, establishing a permanent “fixed fee” funding model, requiring registrants to fully disclose their crypto assets, and enhancing the CFTC’s know-your-customer (KYC) and anti-money laundering (AML) capabilities.