Regulation
CFTC Clashes With Gary Gensler On Real Nature Of Crypto!
10:00 ▪ 3 min read ▪ by Eddy S.
In a financial world where the distinction between securities and commodities is increasingly blurred, a recent statement by Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam has made waves. Speaking before the Senate Agriculture Committee, Behnam claimed that 70 to 80 percent of cryptocurrencies are not considered securities.
CFTC Chairman vs. Gary Gensler on Regulation Issue!
The statement follows a decision by an Illinois court that recognized Bitcoin and Ethereum as commodities, which fall under the CFTC’s jurisdiction under the Commodity Exchange Act. This legal clarification is crucial for legal certainty, especially in the current context where the legal classification of various digital assets is being debated.
Behnam’s position represents a direct challenge to the Securities and Exchange Commission (SEC), as its chairman, Gary Gensler, has previously asserted that most cryptocurrencies are securities. The regulatory divergence between the two agencies charged with overseeing financial markets is now evident.
Consequences for the crypto industry
Behnam also called for new legislative authority to allow the CFTC to regulate non-securities digital assets. This measure aims to protect investors and provide a clear regulatory framework for the cryptocurrency industry.
If the majority of cryptocurrencies are indeed classified as non-securities, this could mean less stringent regulation and greater flexibility for innovation in the cryptocurrency space. However, it also raises questions about investor protection and the need for proper regulation to prevent abuse and fraud.
Behnam’s statement could mark a turning point in cryptocurrency regulation. As the debate over the classification of digital assets continues, the clarity brought The CFTC’s decision is a step forward toward better understanding and more appropriate regulation of the cryptocurrency industry. That said, caution remains in order for investors as they navigate an ever-changing regulatory landscape while protecting their investments from potential risks.
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Eddy S.
The world is changing and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in everything that is closely or remotely related to blockchain and its derivatives. To share my experience and promote a field that fascinates me, there is nothing better than writing informative and relaxed articles.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.