US Commodities and Futures Trading Commission (CFTC) has exercised jurisdiction over Ethereum and stablecoins when defining them as commodities. With this, the CFTC started a direct confrontation with the US SEC, which wanted to consider all cryptocurrencies except Bitcoin as securities.
Interestingly, the latest development also indicates a lack of alignment among US regulators to regulate the crypto space. Chairman of the CFTC Rostin BehnamAddressing the Senate Agriculture Committee on Wednesday, March 8, told:
However, they are a commodity and we need to monitor this market before there is clear instruction from Congress that they are another type of asset. Based on the cases we’ve filed against stablecoins, I think there’s a strong legal argument that USDC and other similar stablecoins will be commodities.
The head of the CFTC added that fiat-backed stablecoins do not operate in anticipation of profits and do not return to their owner. Thus, Behman implied that stablecoins should not fall into the securities category.
The CFTC chairman also referred to the investigation into Tether during a lawsuit in 2021. After that Tetheragreed to pay a settlement fee of $40 million.
CFTC Chairman Defines Ethereum as a Commodity
President not only stablecoins, EthereumHe is of the opinion that it is also a commodity. “It has been listed on CFTC exchanges for some time and therefore creates a “direct jurisdiction hook” for the CFTC to deal with the Ethereum derivatives and underlying market.
Koinfinans.com As we reported, the head of the CFTC added, “If we did not feel strongly that the Ethereum futures product is a commodity asset, we would not allow the listing of our in-house exchanges.” He also added that the SEC has “serious legal defenses” to support its cases.
In addition, cryptocurrency addressed Congress, seeking greater clarity on jurisdictions in regulating the market. Behnam also requested comprehensive regulatory legislation from Congress, adding that enforcement alone is not sufficient to address the risks and consumer protection issues in crypto.
“As our markets have proven, our regulations have proven over the decades, comprehensive regulation can prevent fraud, prevent manipulation and stabilize markets and ultimately protect customers,” he said.
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