Rostin Behnam, Chairman of the US Commodity Futures Trading Commission (CFTC), said that Ethereum (ETH) and stablecoins are in their jurisdiction.
CFTC Chairman Rostin Behnam made remarkable statements in his speech at the Senate Agriculture Committee on March 8. Behnam, if US Securities and Exchange Commission (SEC) He stated that if the necessary regulatory framework is not established by the United States, all stablecoins, as well as Ethereum, will be counted as commodities and will be regulated under the CFTC.
These statements earlier stablecoin cases and analysis on Ethereum CFTC, which is based on someone else, detailed his statement with the following sentences:
Based on the lawsuits we have filed regarding stablecoins, I think there is a strong legal argument that USDC and other similar stablecoins will be commodities unless Congress tells regulators otherwise.
Referring to whether the current regulatory approach to digital assets in the US is working, Behnam said that congress the need for comprehensive regulatory legislation stressed that such legislation FTX He said it was necessary to prevent similar situations from happening.
Comprehensive regulation can prevent fraud, prevent manipulation, as our laws have proven for decades. This step can stabilize markets and ultimately protect customers.
There is a difference of opinion between the two institutions.
Europe in the Union (EU) And AsiaContrary to the regulatory steps taken in , the USA seems to have not decided on how to define cryptocurrencies for a while. There are very different characterizations from the mouth of the country’s financial market regulators, both on stablecoins and Ethereum.
In this latest statement, although the CFTC Chairman has labeled stablecoins as commodities, just last week the SEC said: Paxos stablecoin issued by Binance USD (BUSD) declared that it is an unregistered security and that the issuance of the said asset should be stopped for this reason.
Referring to the Paxos incident, which took place in the past weeks and left its mark on the agenda of the crypto money industry, Behnam said that he had a special interest in stablecoins. there is no expectation of profit and return reminded:
As far as I know, there is no expectation of profit and return in fiat-backed stablecoins. But we are not yet sure how algorithmic stablecoins can be characterized.
A similar mess is happening with Ethereum. SEC Chairman GenslerIn a statement made at the end of February, he suggested that Ethereum could be classified as a security. Although Gensler has repeatedly made similar statements, no clear step has yet been taken in legal status.
The head of the CFTC, who has a contrary view on the subject, argues that Ethereum should be qualified as a commodity due to market analyzes and its decentralized nature:
It is no coincidence that these futures are listed on the CFTC markets. We did the analysis. The listing agency did the legal analysis, and the analysis led to the conclusion that Ether is a commodity, and I’ve been pretty consistent about it in the past.
Why are definitions of commodities and securities important?
securities stocks, bonds And mutual funds financial instruments that are subject to SEC control.
Commodities, on the other hand, are physical goods or raw materials that are traded on exchanges. Gold, oil And sweetcorn are examples of commodities. They are generally not regulated by the SEC and their values according to market supply and demand determines. Commodities are often used to hedge against inflation or to diversify investment portfolios.
First Bitcoin (BTC) Which of these two definitions cryptocurrencies, especially cryptocurrencies, will be seen within the borders of the USA, is important for the future and functioning of the sector. Accordingly, the crypto industry integration into the financial system can be provided on a larger scale or if many other projects Ripple (XRP) may have to grapple with long-term courts such as