The power struggle between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over the supervision of the cryptocurrency market continues to confuse investors about the rules to follow.
In line with the turf war battle between the two market watchdogs, CFTC Chairman Rustin Behnam emphasized that Bitcoin (BTC) and Ethereum (ETH) are commodities, not securities.
Behnam says ether is a commodity even though the points of sale have moved
“I suggested [Ether] She is a commodity, and President Gensler thinks otherwise, “Behnam He said During an event in Manhattan with Rutgers Law, the Wall Street Blockchain Alliance, and Lowenstein Sandler on Monday.
While SEC Chairman Gary Gensler is willing to call Bitcoin a commodity, he does not have the same sentiment for other assets such as Ether and XRP.
Last month, after the merger, as Ethereum moved from Proof-of-Work (PoW) to Proof-of-Stake (PoS), Gensler implicit It can classify the asset as collateral.
While the Securities and Exchange Commission (SEC) was investigating whether Ethereum would pass the Howey test, Gensler indicated that staking could officially be considered an investment. If ETH passes the test, it must be registered with the SEC as collateral. But Behnam is different.
The head of the CFTC also dispelled the public perception that the CFTC would be a more beneficial regulator, given the SEC Intense suppression on crypto entities. “Our law enforcement record speaks for itself,” he said.
The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) must work together
The CFTC chairperson further clarified that, contrary to popular belief, the proposed Digital Consumer Protection Act would not give the agency full authority to classify cryptocurrencies.
The bill was introduced by Senators Debbie Stabeno and John Bozeman of the Senate Agriculture Committee.
Accordingly, Behnam insisted that the CFTC and the Saudi Electricity Company continue to work together.
“It’s a very cynical view to suggest that two agencies can’t detect this and work together,” he said, referring to their experience working together, such as developing security in the future.
“This is the million dollar question. How do we contact the Securities and Exchange Commission when the product is in the gray area?” he asked.
Then Behnam pointed out that both agencies should work together To find a solution to legal and policy issues that would clarify the classification of crypto assets. He said the legislation would help create a regulatory framework and provide resources for the CFTC.
CFTC head repeats: Bitcoin and Ether Are Commodities appeared first on CryptoPotato.