Rostin Behnam passed a statement contradictory to the statements passed by the country’s securities regulatory body SEC.
The U.S. Commodity Futures Trading Commission (CFTC) is the second dominant financial market regulatory body in America, after the Securities & Exchange Commission (SEC). Over the last couple of years, several statements came from both of these two regulatory bodies about cryptocurrencies and the majority of the statements were contrary to each other. For example, the CFTC agency stated that Ethereum was a commodity, while the SEC officials said that Ethereum was security.
As we know, the US SEC sued half a dozen crypto companies this year but failed to provide any clarification over the crypto rules. Through the suits, the SEC body stated that the majority of cryptocurrencies are security.
Recently CFTC chairman Rostin Behnam appeared in an interview with Intercontinental Exchange (ICE). In the interview, Behnam said that 70% of the crypto assets are Commodities.
The CFTC chairman said that people are predicting the institutional demands will increase for the crypto sector with the development of the regulatory framework for this sector but here the regulators are mainly focussing on retail investors.
“We think of individual participants, and I think of our ten-year practice history before me. And I think that’s pretty clear evidence that something needs to be done,” Behnam said.
According to Behnam, this crypto sector needs a new & different approach to regulate the sector. He also said that Congress should interfere in this matter & pass a bill to provide clarity to identify the crypto assets, which are commodities, so that the CFTC agency can gain more power to regulate this innovative sector.
It is worth it to note that, in the past, SEC chairman Gary Gensler said that the crypto sector doesn’t need any kind of new laws because securities laws are enough to regulate this sector.
Following this news, Bitcoin trade price crashed by 2.5%, as the CFTC boss hinted that they have no plans for the institutional crypto investors.