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CFTC Chairman Affirms Bitcoin, Ethereum as Commodities, 70%-80% of Crypto Non-Securities

CFTC Chairman Behnam declares Bitcoin, Ethereum as commodities; 70-80% of the crypto market are non-securities.

Thu, 11 Jul 2024, 09:28 am UTC

Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam declared in a Senate hearing that Bitcoin and Ethereum are commodities, not securities, aligning with a recent court decision and disputing the SEC's stance on most cryptocurrencies.

Bitcoin and Ethereum Officially Commodities, Says CFTC

Significant statements on cryptocurrencies were made by CFTC Chairman Rostin Behnam during a recent Senate Committee hearing.

He reiterated that the Commodities Exchange Act classifies Bitcoin and Ethereum as commodities. Their categorization is based on a recent decision by a district court in Illinois that confirmed their status.

Per Coinpedia, the Commodity Exchange Act recognizes Bitcoin and Ethereum as digital commodities, as stated by CFTC Chairman Behnam, as reported by Fox Business journalist Eleanor Terrett. What she posted on X handle is as follows:

For regulatory purposes, distinguishing commodities from securities is essential, since commodities such as oil and gold are tradable products. In contrast, securities stand for a share of ownership in a business. Because of this categorization, the CFTC is in charge of Bitcoin and Ethereum. It is obviously different from assets that are overseen by the SEC.

Majority of Cryptocurrencies Not Securities, According to Behnam

Behnam disputes the opinion of SEC Chairman Gary Gensler by claiming that 70%-80% of cryptocurrencies are not securities, Coingape shares. This distinction underscores the continuing discussion on the best way to govern digital assets.

Taking Bitcoin and Ethereum into consideration as commodities brings about clarity. It may cause the crypto market to accept it more widely. The precedent this decision sets for future rulings might alleviate some of the market growth-stifling uncertainty.

Future CFTC Legislation for Non-Security Token Oversight

In the future, Behnam wants legislation to be passed to make sure the CFTC is watching over non-security tokens. Because of the unpredictable nature of the market, he stressed the need of robust safeguards for investors. His remarks demonstrate an eagerness to strike a balance between oversight and encouraging new developments in the cryptocurrency industry.

The Defi World is currently experiencing a period of fast technological and precautionary evolution. Key to understanding how rules change is the difference between commodities and securities. Behnam's comments demonstrate the CFTC's determination to adjust rules to accommodate the dynamic nature of the internet.

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