Regulation
CFTC Chairman Says 70-80% of Crypto Assets Are Not Securities
Merchandise Futures contracts Rostin Behnam, chairman of the U.S. Securities and Exchange Commission (CFTC), has said that 70 to 80 percent of cryptocurrencies are not securities. This view, reported by journalist Eleanor Terrett, provides crucial relief to the cryptocurrency industry, which has been embroiled in years of regulatory disputes with the U.S. Securities and Exchange Commission (SEC).
Behnam also called for a balanced framework for classifying tokens as commodities or securities. Additionally, he stressed the importance of continued collaboration between the SEC and CFTC.
CFTC Wants to Regulate Cryptocurrency Industry
In a discussion with Senator Roger Marshall on the jurisdictional conflict between the SEC and the CFTC, Behnam advocated for the CFTC to have full oversight of the cryptocurrency market. suggested that this could simplify regulation, even if it would require redefining what constitutes securities and commodities.
“I think we have the [crypto regulation] “Expertise and capability,” Behnam said.
Learn more: Cryptocurrency Regulation: What Are the Pros and Cons?
Behnam’s position contrasts sharply with that of SEC Chairman Gary Gensler, who supports than all cryptos, except Bitcoin (BTC)are securities. The classification of these digital assets has important regulatory implications, determining their governing bodies.
Additionally, a recent decision by the U.S. District Court for the Northern District of Illinois has bolstered the CFTC’s perspective, ruling that Bitcoin and Ethereum (ETH) are goods. The Court also Altcoins such as Olympus (OHM) and KlimaDAO (KLIMA) are considered commodities under the Commodity Exchange Act.
Behnam highlighted the CFTC’s active role in the crypto industry.
“Nowhere have we been more active than in the digital asset space. In fiscal year 2023, we filed 47 actions involving conduct related to digital commodities, representing more than 49% of all CFTC actions filed during that period,” Behnam said. said.
The President also highlighted the unsustainability of current efforts without a formal regulatory framework. He reiterated the urgent need for congressional action, as highlighted in the Financial Stability Oversight Council’s 2022 report.
Learn more: Who is Gary Gensler? Everything you need to know about the SEC Chairman
Reflecting on his seven years at the CFTC, Behnam observed significant market evolution, with periods of strong gains. volatility and numerous scandals. He noted the growing involvement of established financial institutions in the crypto sector and expressed concern about the lack of protective regulations for investors.
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